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Latin Metals stock jumps on AngloGold Argentina projects investment

The Organullo gold project is one of the three assets AngloGold is involved with. (Image courtesy of Latin Metals.)

Latin Metals (TSXV: LMS) has entered into a binding option agreement with AngloGold Argentina Exploraciones SA, a wholly owned subsidiary of AngloGold Ashanti (NYSE: AU, JSE: ANG, ASX: AGG).

Under the terms, Latin Metals granted AngloGold the option to earn up to an 80% interest in the company’s Organullo, Ana Maria and Trigal gold projects located in Salta province, northwestern Argentina.

“AngloGold’s investment of up to $12.57 million for a 75% ownership interest in the projects is a significant investment and, if AngloGold were to exercise its top-up right for an aggregate 80% ownership, additional investments by AngloGold would include delivery of a mineral resource estimate,” Latin Metals CEO Keith Henderson said in a news release.

“I am particularly pleased to have concluded this agreement so soon after completing a similar deal with Barrick Gold in February,” Henderson continued. “Securing high-quality partners is a very important part of our prospect generator model, and we hope to conclude additional deals as we continue to market our project portfolio.”

Latin Metals’ stock was up over 14% at market close in Toronto Monday. The company has a $C6.5 million ($5.2m) market capitalization.