Vancouver, British Columbia–(Newsfile Corp. – April 3, 2017) – Plata Latina Minerals Corporation (TSXV: PLA) (“Plata Latina“ or the “Company”) is pleased to announce that, it has received all necessary approvals from its shareholders and the TSX Venture Exchange with respect to the option agreement on its “Naranjillo” property previous announced on February 8, 2017, and is now ready to close on the transactions contemplated thereunder.
Pursuant to the option agreement, Metalúrgica Reyna, S.A. de C.V. (“Reyna“), a wholly-owned subsidiary of Fresnillo PLC (“Fresnillo“), was granted with a right to explore the Naranjillo property (the “Property“) for a 36 month term. In consideration, Reyna has paid the Company US $0.2 million and will pay the Company an aggregate total of US $1.45 million in installments over the period. In addition, it will incur US $3 million in exploration expenditures on the Property over the period. If, at the end of such 36 month period Reyna wishes to acquire the Property, it will pay the Company an additional US $500,000 (for an aggregate total of US $2.15 million), and grant the Company with a 3.0% net smelter return royalty (the “Royalty“) with respect to the Property. Reyna will be required to pay advance royalty payments of US $100,000 annually, until the earlier of (a) a maximum of US $1 million in advance royalty payments having been paid, or (b) commercial production of minerals commences from the Property. Reyna will be able to reduce the Royalty to 2% by paying the Company an additional US $1.0 million, and, thereafter, may reduce the remaining 2% Royalty to nil by paying the Company an additional US $5.0 million.