October 2, 2020 – TheNewswire – Toronto, Ontario – Latin American Minerals Inc. (TSXV:LAT) (the “Company“) is pleased to announce that, further to its press release of August 24, 2020, it has entered into a definitive option agreement dated September 23, 2020, with Altius Resources Inc, a wholly-owned subsidiary of Altius Minerals Corp. (TSX:ALS, “Altius“), to purchase a 100% interest in the Sail Pond silver-copper-lead-zinc project (the “Project” or “Sail Pond Property“) on the Great Northern Peninsula of Newfoundland.
Under the terms of the option agreement, the Company has made the initial payment to Altius by issuing an aggregate of 58,991,254 common shares of the Company (each, a “Common Shares“). In order to exercise option the Company must also incur a minimum of $500,000 of expenditures on or before September 23, 2021, and a further $1,000,000 of expenditures on or before September 23, 2023. Additionally, subject to TSX Venture Exchange approval, the Company will issue to Altius an additional $200,000 in Common Shares on the earlier of September 23, 2021 or on the completion of an equity financing for gross proceeds of a minimum of $2,000,000. Upon transfer of ownership, Altius will retain certain preferential purchase rights as it relates to an underlying 2% NSR royalty covering the Sail Pond Property.
The 58,991,254 Common Shares issued to Altius pursuant to the option agreement represent approximately 19.9% of the issued and outstanding Common Shares, on a non-diluted basis. Prior to entering into the option agreement, Altius did not own any Common Shares. Altius may acquire or dispose of securities of the Company, including on the open market or through private transactions, in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Altius’ early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling (709) 576-3440 (38 Duffy Place, 2nd Floor, St John’s, Newfoundland A1B 4M5). The Common Shares issued to Altius are subject to hold period until January 24, 2021.
The Company is also pleased to announce that it has begun preparations to begin a Phase 1 work program on the Sail Pond Property. The program includes soil sampling, rock sampling, trenching and channel sampling. This will be an effort to further refine drill targets and add new data points to the previous extensive exploration work performed over the last 3 years. This work included numerous high-grade silver and base metal rock grab samples across a combined 9km trend including samples of 2030 g/t Ag and 7% Cu, 944g/t Ag and 5.24% Cu and 803g/t Ag with 3.58% Cu*. A map of some previous rock grab sampling results can be seen below:
* Note: the reader is cautioned that rock grab samples are selective by nature and values reported may not represent the true grade or style of mineralization across the Project.
The Company intends to complete this program within the next 60 days. Further details can be found in the NI 43-101 technical report which can be found on the Company’s website (link).
Mathew Wilson, CEO of Latin American Minerals stated, “We very much look forward to advancing our understanding of the Sail Pond Project. It is rare to find such high grades over such a large area in such a favorable jurisdiction that has not seen a single drill hole. Moreover, we are excited to lever the expertise and team of our new partner, Altius, allowing us to avoid any COVID related mobilization delays and quickly advance this project towards defining drill targets.”
Sampling and Analytical Protocols
Quality Assurance-Quality Control (“QA/QC”). All rock grab samples and channel samples were collected by Altius personnel and were secured and delivered to Eastern Analytical in Springdale, Newfoundland, where sample preparation (drying, crushing and pulverizing) and analytical work was completed, with further analysis completed at ALS Global in North Vancouver, Canada. Blanks and standards were regularly inserted into the sample sequence. For multi-element trace analysis, the sample pulps were dissolved in four acids and analyzed by ICP-OES. For samples exceeding the upper limits of the trace analysis, an ore grade analysis was completed. Samples reporting more than 50 g/t silver were re-assayed with a modified ICP-OAS method with a four-acid digestion. Gold values were determined by 30 g fire assay and AA finish. All data were reviewed and verified by Roderick Smith, Chief Geologist for Altius, a Qualified Person as defined by NI 43-101.
About the Company
Latin American Minerals Inc. is a mineral exploration company primarily focused on Canadian exploration opportunities. The company is exploring for silver and base metals at its newly acquired Sail Pond project in Northwestern Newfoundland and for uranium and rare earths at its Butt Township Property in Nipissing, Ontario.
Roderick Smith, M.Sc., P.Geo., Chief Geologist for Altius, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed and approved this project summary.
For more information, please contact:
Mathew Wilson, Mfin, CFA
President and CEO
The Company’s public documents may be accessed at www.sedar.com.
For further information, please visit our website at www.latinamericanminerals.com or email us at
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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