Atlantic Metals to Earn 75% Interest in Argentina Copper Projects Through Deal with Latin Metals

Atlantic Metals, a subsidiary of Moxico Resources, has signed a binding agreement with mineral exploration company Latin Metals to acquire a 75% interest in two copper exploration projects in Argentina. These projects include the Esperanza copper-gold porphyry exploration project and the Huachi copper exploration project.

To earn this stake, Moxico must meet several financial and operational milestones, including staged payments and drilling commitments. Under the terms of the agreement, Moxico will make cash payments totaling $2.78 million to Latin Metals and will assume Latin Metals' existing payment obligations of $4.63 million to the original owners of the projects. Additionally, Moxico must commit to $1 million in work expenditures at the Huachi project and complete at least 65,000 meters of drilling across both projects.

Upon meeting these requirements, Moxico will have the opportunity to increase its interest in the projects to 100% by making an additional payment to Latin Metals. This payment will be the greater of $10 million or an amount calculated based on the copper equivalent in the measured and indicated resource categories.

Latin Metals President and CEO Keith Henderson commented, "The Esperanza project has seen 8,500 meters of drilling, with Latin Metals' best drill-hole intersection returning 387 meters grading 0.57% copper and 0.27 g/t gold from surface, including 166 meters grading 0.84% copper and 0.37 g/t gold from surface. We look forward to seeing the results from the exploration that Moxico will complete."

If Moxico exercises the option to acquire a 100% stake, Latin Metals will retain a 2% net smelter returns royalty. The companies also plan to negotiate a definitive earn-in and purchase option agreement within 60 days of the first anniversary of the effective date, provided the option has not been terminated.

Following the exercise of the option, and subject to the top-up right, Moxico and Latin Metals will form a joint venture, with initial ownership interests of 75% and 25%, respectively. The joint venture will focus on further exploration and, if viable, on the development and commercialization of the projects.