(TheNewswire)
August 24, 2018 / TheNewswire / Toronto, Ontario – Latin American Minerals Inc. (TSXV: LAT) (the “Company”) announces that the board of directors of the Company together with its management team, has commenced a process to initiate a strategic review focused on maximizing shareholder value. The Company is also pleased to announce that it has entered into an option agreement (the “Option Agreement”) with Griftco Corporation (“Griftco”) pursuant to which the Company has been granted the right to earn a 100% interest in the Butt Township uranium and rare-earth mineral property in Ontario (the “Property”).
Strategic Review
In connection with the strategic review process, the board of directors intends to undertake a comprehensive review to identify and consider a range of alternatives and their potential to enhance shareholder value. The Company is currently focused on reviewing the possible sale of its mineral assets located in Paraguay, however, these alternatives could also include, but are not limited to, the sale of all or substantially all of the assets of the Company, a merger or business combination with another party, a corporate sale, a strategic partnership or any combination of the forgoing. The Company does not intend to set a definite schedule to complete its evaluation process and cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, terms or timing of such a transaction.
Butt Township Property
Pursuant to the terms of the Option Agreement, the Company can earn a 100% interest in the Property in exchange for:
- the payment of $50,000 and the issuance of 5,000,000 common shares (“Common Shares”) of the Company to Griftco on the date the TSX Venture Exchange grants approval of the transaction (the “Effective Date”);
- the payment of $25,000, the issuance of 2,500,000 Common Shares to Griftco and the Company incurring $200,000 in expenditures on the Property on or before the first anniversary of the Effective Date;
- the payment of $25,000, the issuance of 2,500,000 Common Shares to Griftco and the Company incurring $200,000 in expenditures on the Property on or before the second anniversary of the Effective Date; and
- the payment of $25,000, the issuance of 2,500,000 Common Shares to Griftco and the Company incurring $500,000 in expenditures on the Property on or before the third anniversary of the Effective Date.
The acquisition of the Property remains subject to approval of the TSX Venture Exchange and the Common Shares issuable thereunder will be subject to a statutory hold period of four months and one day from the date of issuance.
The Property consists of 105 mineral claims covering approximately 1,280 hectares in Butt Township, District of Nipissing, Ontario. Uranium and rare-earth bearing pitchblende was discovered on the Property in the early 1900’s. The Property lies within the Kiosk geological domain and is underlain by mafic, quartzo-feldspathic, and metapelitic geological units. These various geological units host radioactive granitic pegmatite dikes which contain minerals such as allanite, uraninite, pyrochlore, columbite, and other rare earth and uranium-bearing minerals.
Significant recent target-generation exploration work has been completed on the Property, including magnetometer and induced polarization geophysical surveys, geological mapping, and prospecting. The Property has never been drilled, but numerous historical trenching and small-scale mining operations have occurred on the Property. Advanced prospects on the Property include: the William Elliot & Mica Lake prospects, discovered in 1919 from which highly selective grab samples returned up to 79.5 % U3O8 along with high-grade rare earth elements; the Ryan, Mann and Sheehan prospect, discovered in 1921 from which selective grab samples returned up to 0.45 % U3O8 over a 3 foot chip sample; the E.J Rivers prospect, discovered in 1953 from which selective grab samples returned values of up to 9.75 % U3O8 along with high-grade rare earth elements. In addition, the property is contiguous with the Ontario Graphite Kearney Mine property.
The Company is reviewing all modern and historical data to prepare an exploration program which will initially consist of geological mapping, prospecting, and sampling to determine the location of the radioactive pegmatites and various prospective lithologies on the property and their relationship to geophysical anomalies, in order to plan a first-pass diamond drilling program.
Qualified Person
A qualified person has not completed sufficient work to verify the historic information on the Property. Also note that the historical grab samples referenced above are selective in nature and may not be representative of mineralization on the Property. The information provides an indication of the exploration potential of the Property.
The technical information in this press release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (“NI 43-101”) and reviewed and approved by Kelly Malcolm, P.Geo., a Qualified Person under NI 43-101. Mr. Malcolm is a technical advisor to the Company.
References
Geophysical Survey Report on the Butt Township Property, Butt Township, District of Nipissing, Ontario, for Dan Patrie Exploration Ltd., Prepared by: L.D.S. Winter, P.Geo., 23 January 2012.
Ontario Mineral Deposits Inventory, December 1, 2017.
NI 43-101 Technical Report and August 2013 Mineral Resource Estimate, Kearney Graphite Property, Ontario, Canada, Authored by Greg Greenough, P.Geo., of Golder Associates, Effective Date August 30, 2013.
About the Company
Latin American Minerals Inc. is a mineral exploration and gold mining company which holds gold projects in Paraguay and Ontario, Canada. The Company’s Paraguay project consists of 15,020 hectares in the Paso Yobai gold district and the Butt Township Property consisting of 1,280 hectares in Butt Township, District of Nipissing, Ontario.
For more information, please contact:
Mathew Wilson, Mfin, CFA
President and CEO
Tel: 1-416-643-7630
E-mail: information@latinamericanminerals.com
Website: www.latinamericanminerals.com
The Company’s public documents may be accessed at www.sedar.com.
For further information, please visit our website at www.latinamericanminerals.com or email us at
information@latinamericanminerals.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
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