Plata Latina Announces Fresnillo to Purchase Naranjillo NSR for $8,610,000
Plata Latina Minerals (TSXV: PLA) has announced that Fresnillo plc will purchase the 3% net smelter return (NSR) on the Naranjillo property for US$6,000,000 (C$8,610,000).
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Rhea-AI Summary
Plata Latina Minerals (TSXV: PLA) has announced that Fresnillo plc will purchase the 3% net smelter return (NSR) on the Naranjillo property for US$6,000,000 (C$8,610,000). The transaction is expected to close by the end of March 2025.
Upon closing, Fresnillo will no longer be required to make advance royalty payments. This NSR purchase is part of an option agreement originally announced on February 8, 2017. The company retains a separate 2% NSR with Fortuna Mining Corp. on the La Joya project in Hildago, Mexico.
Positive
- Immediate cash injection of US$6M strengthens balance sheet
- Transaction validates exploration success at Naranjillo property
- Company maintains 2% NSR on separate La Joya project
Negative
- Loss of future advance royalty payments from Fresnillo
- Reduction in ongoing revenue streams from Naranjillo property
Details
News Market Reaction – PLLMF
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Vancouver, British Columbia--(Newsfile Corp. - February 27, 2025) - Plata Latina Minerals Corporation (TSXV: PLA) ("Plata Latina" or the "Company") announces that a wholly-owned subsidiary of Fresnillo plc ("Fresnillo") has exercised its right to purchase the
"This purchase is a testament to the success of our exploration discovery at Naranjillo," commented Letitia Wong, Plata Latina's President and CEO. "The cash brought in from this deal strengthens our balance sheet and greatly improves our competitiveness as we are actively seeking strategic growth opportunities."
The Transaction is expected to close before the end of March 2025. Following the close, Fresnillo will no longer be obligated to pay advance royalty payments. The Naranjillo NSR is part of the option agreement announced on February 8, 2017 titled "Plata Latina Enters Option Agreement with Fresnillo for Naranjillo Property".
The Company retains a
About Plata Latina Minerals
Plata Latina Minerals is a growth-focused company focused on exploring strategic opportunities within the mining industry. Led by a highly experienced team with a proven track record in identifying, optimizing and growing businesses, Plata Latina aims to create long-term value through acquisitions, partnerships and other strategic transactions. The Company currently has two royalties in its portfolio and receives annual advance royalty payments as a result of the successful discovery and sale of the Naranjillo project. Plata Latina is actively evaluating opportunities.
For more information, please contact:
Patricia Fong
Chief Financial Officer
Telephone: +1 800 933 9925
Email: info@plminerals.com
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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242573
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