Latin Metals Receives US$250,000 Payment from Daura Gold
Rhea-AI Summary
Latin Metals (OTCQB: LMSQF; TSXV: LMS) received a US$250,000 milestone payment from Daura Gold, comprising US$150,000 to the underlying vendor and US$100,000 to Latin Metals. Daura completed Phase I drilling at Cerro Bayo: 1,850 metres in 18 holes, meeting the 1,500m minimum. Assays are expected in May 2026 and Phase II drilling is planned for Q3 2026 at Cerro Bayo and La Flora. La Flora reported surface values up to 82 g/t Au and 1,239 g/t Ag. Cerro Bayo is fully permitted for drilling; La Flora permitting is in progress.
Positive
- Received US$100,000 cash payment to company
- Phase I drilling completed: 1,850 metres in 18 holes
- La Flora surface samples up to 82 g/t Au and 1,239 g/t Ag
- Cerro Bayo is fully permitted for drilling
Negative
- Key assay results remain pending (expected May 2026)
- Milestone payments total US$1,700,000 with only US$300,000 paid to date
- Option requires 28,000 metres of drilling commitment (1,850m completed)
- US$150,000 of the US$250,000 payment went to the underlying vendor, not Latin Metals
News Market Reaction – LMSQF
In the May 7 session, LMSQF declined 1.57%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Provides Cerro Bayo Drilling Update
VANCOUVER, British Columbia, May 07, 2026 (GLOBE NEWSWIRE) -- Latin Metals Inc. (“Latin Metals” or the “Company”) - (TSXV: LMS and OTCQB: LMSQF) reports that it has received a US
Under the terms of the option agreement, Daura may earn up to a
Cerro Bayo – Phase I Drilling Completed
Daura has completed the first phase of drilling at Cerro Bayo completing 1,850 metres of diamond drilling in 18 drill holes and testing multiple target areas across a district-scale epithermal system defined by prior mapping, geochemistry, and geophysical surveys. The Phase I program satisfies the initial drilling commitment under the option agreement, which includes a minimum of 1,500 metres of drilling to be completed by April 30, 2026.
This work represents Daura’s first systematic drill testing of multiple targets across Cerro Bayo and marks an important step in evaluating the scale and continuity of mineralization across the property. Assay results are pending and are expected to be received from Daura Gold in May 2026, representing a key upcoming catalyst for the Company.
Phase II Drilling – Expanding Across Cerro Bayo and La Flora
Daura is planning a Phase II drill program in Q3 2026, expanding exploration across both Cerro Bayo and La Flora. At Cerro Bayo, Phase II will focus on follow-up drilling, including step-out and extension holes designed to test continuity and further define zones identified during Phase I. At La Flora, the program will include initial drill testing of this emerging high-grade target.
La Flora – High-Grade Surface Results
La Flora is a recently defined high-priority, high-grade target, following Latin Metals’ identification of visible gold and high-grade epithermal mineralization at surface (news release February 4, 2025). Previous surface sampling returned grades of up to 82 g/t gold and 1,239 g/t silver (Figure 1).
Visible gold occurs within silica-rich vein material, consistent with high-grade epithermal systems. These structures are partially concealed beneath shallow overburden, suggesting potential for mineralization extending along strike and at depth.
Figure 1: Map showing relative locations of the Cerro Bayo and La Flora properties and highlights of high-grade rock sampling results. Visible gold and high-grade gold samples were returned from La Flora rock sampling in early 2025. La Flora will be drill tested as part of Daura’s Phase II drill program, together with planned follow-up drilling at Cerro Bayo.
District-Scale Opportunity – Cerro Bayo and La Flora
The Cerro Bayo and La Flora projects are located within the Deseado Massif, one of the world’s most prolific precious metals districts. Since 1990, the district has produced and defined more than 600 million ounces of silver and 20 million ounces of gold.
At Cerro Bayo, exploration has outlined an 8 km-wide structural corridor hosting multiple low-sulfidation epithermal vein targets. Phase I drilling represents the first step in systematically testing this broader mineralized system, with Phase II expected to advance the most prospective zones. At La Flora, the combination of visible gold, bonanza-grade surface samples, and favourable geological setting highlights the potential for additional high-grade mineralization and reinforces its priority for initial drilling.
Permitting Status
Cerro Bayo is fully permitted for drilling, allowing for continued advancement of follow-up work. At La Flora, drill permitting is in progress and is expected to be completed in due course, enabling initial drilling as part of the Phase II program.
Mark Sumner, Chairman and CEO of Daura Gold, commented:
“Completion of the first phase of drilling at Cerro Bayo marks an important milestone as we advance the project. While we await assay results, the work completed to date has reinforced our confidence in the system and the broader opportunity across the district. The inclusion of La Flora in Phase II introduces a compelling new target, where high-grade mineralization and visible gold at surface point to significant exploration potential.”
Keith Henderson, President and CEO of Latin Metals, commented:
“The completion of Phase I drilling and receipt of this milestone payment highlight the strength of our prospect generator model with exploration at both Cerro Bayo and La Flora being fully funded by Daura. With assays expected in the near term and Phase II drilling planned, we are entering an important phase of exploration while maintaining capital discipline.
Qualified Person
Eduardo Leon, QP, is the Company's qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Leon is not independent of the Company, as he is an employee of the Company and holds securities of the Company.
About Latin Metals
Latin Metals Inc. is a copper, gold and silver exploration company operating in Peru and Argentina under a prospect generator model, minimizing risk and dilution while maximizing discovery potential. The company secures option agreements with partners to fund exploration. This approach provides early-stage exposure to high-value mineral assets. Latin Metals is actively seeking new strategic partners to advance its portfolio.
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Upcoming Events
Latin Metals is pleased to announce its participation in several Q2 2026 industry conferences, providing a platform to connect with investors, industry leaders, and potential partners:
- 121 London – London, UK, May 11-12, 2026
- Deutsche Goldmesse – Frankfurt, Germany, May 15-16, 2026
These events offer valuable opportunities to share Latin Metals’ exploration progress in Argentina and Peru, highlight the advantages of its low-dilution prospect generator model, and explore strategic investment and partnership opportunities across its gold, copper, and silver-focused portfolio.
On Behalf of the Board of Directors of
LATIN METALS INC.
“Keith Henderson”
President & CEO
For further details on the Company, readers are referred to the Company's website (www.latin-metals.com) and its Canadian regulatory filings on SEDAR+ at www.sedarplus.com.
For further information, please contact:
Keith Henderson
Suite 1920, 1188 West Georgia Street,
Vancouver, BC, V6E 4A2
Elyssia Patterson, VP Investor Relations
Email: elyssia@latin-metals.com
Phone: 778-683-4324
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the negotiation of the Option Agreements and exercise of the Option for the Properties, the anticipated content, commencement, timing and cost of exploration programs in respect of the Properties and otherwise, anticipated exploration program results from exploration activities, and the Company's expectation that it will be able to enter into agreements to acquire interests in additional mineral properties, the discovery and delineation of mineral deposits/resources/reserves on the Properties, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Company’s Argentine projects in a timely manner, the availability of financing on suitable terms for the development, construction and continued operation of the Company projects, and the Company’s ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Properties, including the geological mapping, prospecting and sampling programs being proposed for the Properties (the "Programs"), actual results of exploration activities, including the Programs, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital, future prices of precious metals and copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays or the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSX-V acceptance for filing of the Option Agreements, any current or future property acquisitions, financing or other planned activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, and risks related to the integration of acquisitions, as well as those factors discussed under the heading "Risk Factors" in the Company's latest Management Discussion and Analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR+ website at www.sedarplus.com.
Readers are cautioned not to place undue reliance on forward looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking information in this news release or incorporated by reference herein.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4605ddb3-8209-4e12-91e4-d615c10851a5
