Latitude Silver consolidates highly prospective land position in Huancavelica through transaction with Peruvian Metals
March 6, 2020
Mines & Metals Trading (Perú) PLC ("MMTP" or the "Company") is pleased to announce that it has acquired Peruvian Metals Corp.’s 100% owned subsidiary Corongo Exploraciones (“Corongo”) for US$ 200,000 in cash and US$ 600,000 in shares. Corongo holds several concessions totaling 2,420 hectares in the Huachocolpa mining district, Huancavelica region, Peru, where MMTP is already in production at the Nueva Recuperada operation. With this transaction, that includes concessions adjacent to MMTP’s land package, MMTP consolidates its operating position in the area, where it already owns the 600-tonne-per-day (tpd) Recuperada mill. The Corongo transaction does not include the Minas Maria Norte property, that will be retained by Peruvian Metals through a subsidiary.
With the addition of the Corongo concessions, MMTP’s land coverage in Huancavelica reaches 15,000 hectares including tens of kilometers of outcropping epithermal veins, offering one of the most exciting development projects in Central Peru.
MMTP is currently undertaking a reverse takeover (RTO) with Zincore that is expected to be completed during the second quarter of 2020. The current valuation of MMTP shares is based on a pre-RTO financing of $17.33 CDN per share. Peruvian Metals has received US$ 200,000 and will receive 45,008 shares of MMTP valued at C$ 17.33 or C$ 780,000. Upon completion of the RTO, each share of MMTP will be exchanged for approximately 73.2 Zincore shares. Peruvian Metals will receive approximately 3.3 million shares in the new TSX-Venture listed corporate entity called Latitude Base Metals.
José María García, CEO of MMTP and proposed CEO of Latitude Base Metals, commented on the transaction: “With the acquisition of these mineral tenements from Peruvian Metals, Latitude Base Metals (MMTP) fulfills another step in its strategy of consolidating the overall district of Huachocolpa. This district, in the region of Huancavelica, is set up to be the next large polymetallic play in Peru.”
“Nueva Recuperada is adding almost 2,500 Ha to its existing 12,600 Ha, bringing numerous high-grade Pb/Ag/Zn veins to our portfolio,” he added. “At present, we are implementing an ambitious strategy to scale up production by mining several veins within the same integrated infrastructure; as well as implementing an aggressive drilling and development campaign over the upcoming months. Nueva Recuperada currently operates at a capacity of 600 tpd, and during 2020 we will deliver a preliminary economic assessment (PEA) on the Tangana project, targeting production levels of 2,500 tpd by 2024.”
“We would like to give our warmest welcome to Peruvian Metals as shareholders of our company. We are certain that this deal will deliver substantial value to all stakeholders in the short term,” concluded García.
About MMTP - Latitude Base Metals
MMTP, a company incorporated under the Companies Act (2006) (Isle of Man), is a dynamic mining company with a vision to extract full value from undervalued projects across Latin America. MMTP's primary assets are the Nueva Recuperada silver-lead-zinc property and the Tangana project, located in Huancavelica, Peru, hosting a network of mineral-bearing veins.
On December 23, 2019, MMTP entered into an arm’s length definitive business combination agreement with Zincore Metals Inc. ("Zincore") to complete a reverse takeover ("RTO") of Zincore by MMTP. Upon closing, the Resulting Issuer is expected to be renamed "Latitude Base Metals Inc.", and will continue the businesses of MMTP and Zincore. For more details about the Business Combination, please refer to Latitude Base Metals news release dated January 13, 2020.
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