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*.”