Image via Wikipedia Nov 2010 by MarketwireLatin American Minerals Consolidates 100 Square km Epithermal Gold System by Acquiring 70% Interest in Minera Guaira Trend
Latin American Minerals Inc. (TSX VENTURE: LAT) (the "Corporation") announces that it has exercised its option to acquire a 70% interest in the mining license (the "License") held by Minera Guaira S.A. ("Minera Guaira") near Paso Yobai, Paraguay.
Upon Minera Guaira receiving final government approval to the transfer of this 70% interest in the License to the Corporation's Paraguayan wholly owned subsidiary, the Corporation is required to release from escrow the final option payment to Minera Guaira of approximately US$1.26 million, expected to occur within 45 days. The parties will then enter into a 70/30 joint venture agreement with the Corporation as operator. The party that does not contribute its pro-rata share of costs will be diluted on a straight line basis. The party whose interest is diluted to 15% or less will automatically be reduced and converted to a 1% interest (this interest is required under the terms of the License and is to be non-participating) and will receive a 3% net smelter returns royalty.
The Corporation also holds 100% of the exploration concessions to the north of the Discovery Trend (the "Northern Trend"), where initial auger hole testing has demonstrated gold values similar to those of the Discovery Trend. The two trends combined produce a large footprint gold system measuring approximately 9 km x 11 km, or approximately 100 square kilometers.
Miles Rideout, the President and CEO of Latin American Minerals stated 'This is a very positive step to consolidate the properties of this extensive, emerging epithermal gold system. The support we have consistently received from Minera Guaira during the 3 1/2 years of our Option Agreement is acknowledged and appreciated.'
In conjunction with the decision to exercise the option with respect to the License, the Corporation formally terminated the option agreement with Minas Paraguay S.A. in connection with its mining license following a careful review of the exploration results on this property.
The Corporation further announces the grant of stock options to acquire 1.1 million common shares to its Chairman Richard Boulay. The stock options are exercisable at $0.18 per share, with a term of five years and subject to the Corporation's standard vesting schedule.
Dr. Waldo Perez is the Corporation's internal "Qualified Person" under the requirements of National Instrument 43-101.
About the Company:
Latin American Minerals is a mineral exploration company that intends to develop its large Paso Yobai gold project in Paraguay.
The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address Latin American Minerals' expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as contained in Latin American Minerals' filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events, unless required under applicable securities laws. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Latin American Minerals Inc. Miles Rideout President and CEO Argentina: (54-261) 439-9268 Toronto: (1-416) 902-8558 or 360 1921 www.latinamericanminerals.comSOURCE: Latin American Minerals Inc.
Notes:
Latin American Minerals (CVE-LAT) owns 25% of Lithium Americas Corp (CVE-LAC)
