To earn an preliminary 70% curiosity, Barrick should pay $2.32 million in money to the underlying vendor and $750,000 in money to Latin Metals. It should additionally spend $5 million on exploration and put together a preliminary financial evaluation.
To earn a further 15% for a complete of 85%, Barrick should pay one other $425,000 and “sole fund all prices” to ship a prefeasibility research.
If Barrick completes the preliminary 70% choice, the 2 firms will type a joint-venture (Barrick with 70% and Latin Metals 30%). If Barrick completes the second choice, it would turn out to be an 85%-15% three way partnership undertaking, Latin Metals stated.
Keith Henderson, CEO of Latin Metals, stated Barrick could be an excellent associate that may deliver “appreciable technical and monetary functionality” to the undertaking. He additionally famous that if each choices are exercised, Barrick’s whole funding would quantity to about $8.5 million, “which is able to assist to restrict dilution to Latin Metals’ shareholders.”
Highlights from 5 rock samples taken from two mineralized zones about 6 km aside on the 5,000-hectare La Flora property included 14.88 grams gold per tonne and 55.8 grams silver per tonne in a single pattern and three.68 grams gold per tonne and eight.7 grams silver per tonne from one other.
5 rock samples taken from the 8,000-hectare Cerra Bayo property in 2020 returned grades of between 0.08 gram and 1.55 grams gold per tonne and between 5.1 grams and 100 grams silver per tonne. The 5,500-hectare Cerro Bayo Sur is contiguous and to the south of the Cerro Bayo undertaking.
McEwen Mining (TSX: MUX; NYSE: MUX) and Hochschild Mining’s (LSE: HOC) San Jose mine and Newmont Mining’s (TSX: NGT; NYSE: NEM) Cerro Negro mine are about 50 km north of the properties. The San Jose and Cerro Negro mines produced 64,900 oz. and 270,000 oz. gold in 2020.
During the last yr the corporate has traded within the vary of C10¢ and C24¢. It has 48.07 million widespread shares excellent for a market cap of C$6.97 million ($5.5m).
(This text first appeared in The Northern Miner)