/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
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VANCOUVER, July 14, 2016 /CNW/ - Plata Latina
Minerals Corporation (TSX-V: PLA) ("Plata Latina" or the
"Company") has executed a letter of intent ("LOI") with a
wholly-owned subsidiary of Fresnillo plc ("Fresnillo") under which
Fresnillo has the option to
acquire its Naranjillo Property ("Naranjillo" or the "Property")
for a cash commitment of US$2,150,000
payable to the Company over three years. Fresnillo is also required to spend
US$3,000,000 in exploration on the
Property. Additionally the agreement is subject to a 3% NSR on the
Property in favour of the Company. Naranjillo is located in
Guanajuato, Mexico and adjacent to
Fresnillo's Cerro Blanco project.
"This option agreement with Fresnillo, the world's largest silver
producer, confirms Plata Latina's
exploration model of discovering hidden, high grade silver-gold
districts within the Mexican Silver Belt and also supports our
belief in the significant potential at Naranjillo," commented
Plata Latina's President and CEO,
Mike Clarke. "Fresnillo has been actively exploring adjacent
to Naranjillo at their Cerro
Blanco project and they are particularly well suited to
advance the Project forward should Fresnillo exercise its option. Their
involvement recognizes the potential value of Naranjillo, provides
Plata Latina with further upside via
the royalty we retain and provides working capital to advance our
other exciting projects such as La
Joya and Vaquerias. La
Joya is the same conceptual target as Naranjillo and
Vaquerias is located between two
world class high-grade silver districts. Early stage first phase
drilling already has identified a much shallower hidden vein system
at Vaquerias, with initial results
of up to 737 g/t silver over 0.55 metres*."
With Fresnillo's payments as
described below, the Company intends to conduct geophysical and
geologic field work to define high potential drill targets on its
other three promising properties in the Mexican Silver Belt as well
as initiate drilling to test these targets. In addition,
Plata Latina plans to re-initiate
field work to generate new grass roots exploration projects for the
portfolio. Given the Company's early success with the
high-grade discovery at Naranjillo, Plata
Latina will advance exploration for the next high-grade
silver district in Mexico through
its proven exploration strategy of discovering hidden, high-grade
silver-gold districts in the Mexican Silver Belt.
A Summary of LOI Terms
A summary of the terms of the LOI are set forth below:
- Upon execution of the definitive agreement ("Definitive
Agreement"), Fresnillo shall pay
to Plata Latina a total amount of
US$2,150,000 as follows:
- US$400,000 on the signing of the
Definitive Agreement, of which US$100,000 shall be paid by Fresnillo within 15 days after signing this
LOI;
- US$250,000 every six-month period
("Semester") for five Semesters, counted from the date of signature
of the Definitive Agreement; and,
- US$500,000 on the date which is
36 months from the date of the Definitive Agreement.
- The Definitive Agreement shall provide an option term of three
years, during which Fresnillo
shall invest a minimum of US$3,000,000 in further exploration of
Naranjillo.
- Plata Latina shall retain a 3%
net smelter return ("Royalty"). One third of such Royalty may
be purchased by Fresnillo for
US$1,000,000, and the remaining two
thirds of the Royalty may be purchased by Fresnillo for US$5,000,000.
- After the three-year option period and if Fresnillo acquires Naranjillo, Fresnillo shall pay to Plata Latina advance minimum royalty payments in
the amount of US$100,000 per year.
The total amount of the advanced royalty payments will be limited
to a total aggregate amount of US$1,000,000. Such advanced amounts paid to
Plata Latina shall be deducted from
future royalty payments that may result.
The transaction is subject to customary due diligence,
completion of a Definitive Agreement and shareholder and regulatory
approvals if required.
* Vaquerias results as
previously announced in the May 12,
2013 press release.
About Plata Latina Minerals
Plata Latina
Minerals is a Canadian exploration company with a portfolio of four
silver-gold properties situated in the prolific Mexican Silver Belt
focused on discovering new silver-gold vein districts.
Plata Latina's expertise in the ore
horizon concept and extensive experience in Mexico provides a competitive edge for
discovery of new districts between old historic deposits. Its
highly experienced management team and board are focused on
developing its portfolio of high-potential targets and exploring
additional value-creation opportunities. The Company trades on the
TSX Venture Exchange under "PLA".
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of
this release.
FORWARD LOOKING STATEMENTS
This news release
contains forward-looking statements and other statements that are
not historical facts including statements about the Company's
latest exploration program. Such forward-looking statements
are subject to known and unknown risks, uncertainties and
assumptions that could cause actual results to vary materially from
target results and the results or events predicted in these
forward-looking statements. As a result, investors are cautioned
not to place undue reliance on these forward-looking
statements.
The forward-looking statements contained in this news release
are made as of the date of this release. Except as required
by applicable law, Plata Latina
disclaims any intention and assumes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking
information reflects the current expectations or belief of the
Company based on information currently available and such
information is subject to a number of assumptions, risks and
uncertainties, including risks related to exploration,
uncertainties related to financings; the uncertainties of
interpreting exploration results and the other risks associated
being a mineral exploration company.
SOURCE Plata Latina Minerals