Bullion major AngloGold Ashanti has been granted an option to earn up to 80% interest in three gold projects owned by Latin Metals in Salta province, north-western Argentina.
The South Africa-headquartered major has an option to earn a 75% interest in the Organullo, Ana Maria, and Trigal Gold projects for $2.575-million and spending an aggregate $10-million on exploration within five years.
AngloGold has a top-up right, which would increase its ownership to 80%.
“We are delighted to welcome AngloGold as an option partner. AngloGold Ashanti is the fourth-largest gold producer globally, with operations across four continents,” said president and CEO Keith Henderson.
“AngloGold’s investment of up to $12.575-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 and further cash payments commensurate with defined ounces to Latin Metals.”
In February, Latin Metals signed an earn-in agreement with Barrick Gold for projects in Santa Cruz, Argentina. Barrick has the right to acquire up to an 85% interest in the Cerro Bayo, Cerro Bayo Sur and La Flora properties.
“Securing high-quality, technically excellent, and financially capable 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,” said Henderson.
Latin Metals’ shares jumped 14% to C$0.12 apiece on Monday.