Plata Latina Announces Sale and Royalty Agreement with Fortuna on the La Joya Project

Rhea-AI Summary

Plata Latina Minerals (TSXV: PLA) has entered into an agreement with a subsidiary of Fortuna Mining Corp. to sell the mining concession for the La Joya Project in Hidalgo, Mexico. In return, Plata Latina will receive a 2% Net Smelter Returns (NSR) royalty on the project, starting from the commencement of commercial production. Fortuna has the option to acquire 1% of the NSR for US$1,000,000.

This agreement adds a second royalty to Plata Latina's portfolio, complementing their existing royalty agreement with Fresnillo plc on the Naranjillo Property in Guanajuato, Mexico. The company is currently receiving advance royalty payments of US$100,000 on Naranjillo, with a 3% NSR royalty granted upon commercial production.

Positive

• Acquisition of a 2% NSR royalty on the La Joya Project
• Potential for future cash flow from the La Joya royalty
• Existing royalty agreement with Fresnillo plc on Naranjillo Property
• Current receipt of US$100,000 advance royalty payments from Naranjillo

Negative

• Divestment of La Joya Project mining concession
• Fortuna's option to reduce royalty by acquiring 1% NSR for US$1,000,000

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Vancouver, British Columbia--(Newsfile Corp. - August 22, 2024) - Plata Latina Minerals Corporation (TSXV: PLA) ("Plata Latina" or the "Company") is pleased to announce that, through its wholly-owned subsidiary Plaminco S.A. de C.V., it has entered into an agreement with a wholly-owned subsidiary of Fortuna Mining Corp. ("Fortuna") wherein Plata Latina has assigned to Fortuna the mining concession for the La Joya Project (the "Project") in consideration for the right to receive a royalty of 2% of the Net Smelter Returns ("NSR") on the Project commencing at the start of commercial production on the Project. Fortuna may at any time acquire 1% of the NSR for US$1,000,000. The La Joya Project is located in the state of Hidalgo, Mexico.

"We are pleased we are able to retain exposure to the future upside at the La Joya Project and add another royalty to our Company," stated Letitia Wong, Plata Latina's President and CEO. "We now have two royalties in our portfolio as we continue our strategic review of Plata Latina and explore potential transformational transactions. With both cash and cash flow, we are taking the time to thoroughly evaluate various opportunities."

Plata Latina also has a royalty agreement with a wholly-owned subsidiary of Fresnillo plc on the Naranjillo Property. The Company currently receives advance royalty payments of US $100,000 until the earlier of (i) US $1,000,000 of advance royalty payments have been paid, or (ii) Naranjillo commences commercial production of minerals. The Company also was granted a 3% NSR royalty. Naranjillo is located in Guanajuato, Mexico.

About Plata Latina Minerals

Plata Latina Minerals was a Canadian exploration company with mineral properties in Mexico. The Company sold its Naranjillo Property to Fresnillo plc for a total of US $2,150,000 and currently receives advance royalty payments of US $100,000 until the earlier of (i) US $1,000,000 of advance royalty payments have been paid, or (ii) Naranjillo commences commercial production of minerals. In addition, the Company was granted a 3% net smelter return royalty (NSR). The Company also has a 2% NSR on the La Joya Project, which is indirectly owned by Fortuna Mining Corp.

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/220788

FAQ

What is the royalty agreement between Plata Latina (TSXV: PLA) and Fortuna for the La Joya Project?

Plata Latina will receive a 2% Net Smelter Returns (NSR) royalty on the La Joya Project, starting from the commencement of commercial production. Fortuna has the option to acquire 1% of the NSR for US$1,000,000.

Where is the La Joya Project located?

The La Joya Project is located in the state of Hidalgo, Mexico.

What other royalty agreement does Plata Latina (TSXV: PLA) have?

Plata Latina has a royalty agreement with a subsidiary of Fresnillo plc on the Naranjillo Property in Guanajuato, Mexico, receiving advance royalty payments of US$100,000 and a 3% NSR royalty upon commercial production.

How much are the advance royalty payments Plata Latina (TSXV: PLA) receives for the Naranjillo Property?

Plata Latina receives advance royalty payments of US$100,000 for the Naranjillo Property until either US$1,000,000 of payments have been made or commercial production begins.