Lithium Americas gets final approval for worlds third largest Lithium deposit

Ed Note:  Lithium Americas (LAC-TSE) was spun off by Latin American Minerals (TSE-LAT) which still owns almost 30% of LAC.

Lithium Americas Receives Final Decree, Approving the Development of its Cauchari-Olaroz Lithium Project

TORONTO, Canada, December 12, 2012 - Lithium Americas Corp. (TSX: LAC) (OTCQX: LHMAF) (“Lithium Americas” or the “Company”) is pleased to announce that it has received final project approval for the construction of its Cauchari-Olaroz lithium/potash project.

Upon the recommendation of the Committee of Experts, the Jujuy Government has executed the final decree, through the joint resolution of the Production Minister and Secretary to the Government, which approved the development of Lithium Americas’ Cauchari-Olaroz project.  Such approval includes water use permitting, confirmation of mining licences in good standing, environmental approval for lithium and potash production, and all other permits required to start project construction.

 “Lithium Americas is very proud of advancing the Cauchari-Olaroz project from discovery and exploration, through development, to fully permitted in just short of 4 years,”  stated   Dr. Waldo Perez, President and CEO of Lithium Americas. "We continue to receive an enormous level of support from multiple constituencies in Argentina. We have worked extremely hard to garner this support, which has served to accelerate the permitting and development of Cauchari-Olaroz, as well as further de-risk the project. With the permitting process concluded, our next milestone is securing project financing and off take agreements, which will allow us to initiate project construction in 2013.”

About the Company

Lithium Americas is developing one of the world’s largest and lowest cost lithium operations.   The Company has defined the world’s third largest lithium brine resource, and a completed definitive Feasibility Study identified that Lithium Americas’ operating cost per tonne of lithium carbonate is expected to be one of the lowest in the industry.  Mitsubishi Corporation and Magna International are shareholders in the Company, in addition to both companies having off-take arrangements with Lithium Americas.

For more information please contact:

Mike Cosic, Chief Financial Officer

mcosic@lithiumamericas.com

416-360-1921

or visit www.lithiumamericas.com

Cautionary Note and Forward-Looking Statements

This press release contains forward looking statements, which can be identified by the use of statements that include words such as "plan", “developing”, “estimate”, "could", "potential", "believe", "expect", "anticipate", "intend", "likely", "will" or other similar words or phrases. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resource and reserve estimates, grade/concentration or recovery rates, lithium or potash prices, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; changes in project parameters as plans continue to be refined; failure of equipment or processes to operate as anticipated or other unanticipated difficulties or interruptions; political, community relations, regulatory, environmental and other risks of the mining industry and other risks more fully described in the Company’s Annual Information Form dated May 28, 2012 and its most recent management’s discussion and analysis available on SEDAR. The Cauchari-Olaroz project has no operating history upon which to base estimates of future cash flow. The capital expenditures and time required to develop any new project is considerable and changes in capital and/or operating costs or construction schedules can affect project economics. It is possible that actual capital and/or operating costs may increase significantly and economic returns may differ materially from the Company’s estimates or that prices of lithium and/or potash may decrease significantly or that the Company could fail to obtain or maintain governmental approvals necessary for the operation of its project or obtain project financing on acceptable terms and conditions or at all, in which case, the project may not proceed either on its original timing or at all. It is not unusual in the mining industry for new mining operations to experience unexpected problems during the start-up phase, resulting in delays and requiring more capital than anticipated. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause results to be materially different from those planned, estimated, forecasted, projected or expected. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward looking statements.

  

Lithium Americas
357 Bay Street, Suite 602
Toronto Ontario M5H2T7
Canada

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Latin American Minerals consolidates burgeoning gold property in Paraguay.

Image via Wikipedia  Nov 2010 by Marketwire

Latin 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 property that is subject to the License, and which is fully permitted for mining, covers the "Discovery Trend" where the Corporation has excavated 11 mechanical trenches comprising 450 metres and 47 diamond drill holes totalling 6,600 metres, returning up to 26.6 gpt gold over 6.5 metres. This work has confirmed the continuity of the gold mineralization to a depth of 100 metres and remains open to depth. Sampling is currently in progress in order to better quantify the grades and potential gold recovery values that can be expected for this deposit, using a laboratory scale rod mill and Falcon L40 gravity concentrator.

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.com

SOURCE: Latin American Minerals Inc. 

 Notes:
 Latin American Minerals (CVE-LAT) owns 25% of  Lithium Americas Corp (CVE-LAC)