Cerro Bayo & La Flora Projects
Optioned to Partner
Argentina
Cerro Bayo And La Flora
Partner Status
Daura has a right to earn up to 80%
Commodity
Gold–Silver
Jurisdiction
Santa Cruz Province
Key Catalyst
Partner-funded drilling is advancing multiple high-priority gold-silver targets at Cerro Bayo and La Flora within the prolific Deseado Massif of Santa Cruz Province, Argentina.
Cerro Bayo and La Flora comprise a district-scale gold-silver exploration project located within the Deseado Massif of Santa Cruz Province, Argentina — one of the world’s premier epithermal precious metals districts. The projects are fully drill permitted and are being advanced through a partner-funded option agreement with Daura Gold Corp., which can earn up to an 80% interest through staged exploration expenditures, drilling commitments, and milestone payments. Recent drilling confirmed high-grade gold and silver mineralization within a large fertile low-sulphidation epithermal system, supporting continued discovery potential across multiple priority targets.
Partner-Funded Exploration
The Cerro Bayo and La Flora Projects are optioned to Daura Gold Corp., which is funding exploration under a staged earn-in agreement to earn up to an 80% interest. The agreement includes substantial cash payments, technical milestones, and 28,000 metres of drilling required to complete the initial 75% earn-in.The structure provides Latin Metals shareholders with exposure to partner-funded discovery drilling and district-scale exploration upside while minimizing shareholder dilution through the Company’s prospect generator model.\n\n> Thereafter, Daura Gold has the option to increase its interest to 80% through cash payments indexed to resource ounces.
EARN-IN OBLIGATIONS FOR 75%
| Payment to Latin Metals (USD) | Assumed Payment to Underlying Vendor (USD) | Drilling (m) | |
|---|---|---|---|
| Within 3 Days of Effective Date | $200,000(1)(2) | $100,000(1)(3) | - |
| On or before April 30, 2026 | $100,000 | $150,000(1)(4) | 1,500(1) |
| On or before December 31, 2026 | $150,000 | $100,000(1)(3) | 1,500 |
| On or before June 15, 2027 | - | $150,000(4) | - |
| On or before December 31, 2027 | $250,000 | - | 10,000 |
| On or before December 31, 2028 | $1,000,000 | - | 15,000 |
| $1,700,000 | $400,000 | 28,000 |
(1) $450,000 payments to Latin Metals and the Underlying Vendor, and 1,500m of drilling are irrevocable commitments.
(2) $200,000 payable to Latin Metals in cash or shares, at Daura's election, through the issuance of an equivalent monetary amount in Daura Shares.
(3) $100,000 to be retained by Latin Metals as reimbursement for amounts paid to the Underlying Vendor in 2025.
(4) Payments to be forwarded by Latin Metals to the Underlying Vendor.
TOP UP TO 80%
To exercise the Top-Up Right, Daura must make cash payments to Latin Metals based on the measured, indicated and inferred mineral resources included in the mineral resource estimate set out in the Technical Report, as follows:
- US$7.00 per gold equivalent ounce of measured and indicated resources; and
- US$5.00 per gold equivalent ounce of inferred resources.
UNDERLYING VENDOR
Under an option agreement with Tres Cerros Exploraciones S.R.L. (“TCE”). Under the terms of the Agreement, Latin Metals has agreed to purchase the remaining 29% (aggregate 100%) on the following terms:
- Total consideration of US$400,000, payable in three tranches:
- US$100,000 on or before June 30, 2025 (paid)
- US$150,000 on or before June 30, 2026
- US$150,000 on or before June 30, 2027
- TCE retains a 0.75% Net Smelter Return (NSR) royalty
- Latin Metals holds a buyback right on 0.5% of the NSR for US$1 million
2026 PLANNED WORK
Daura Gold completed Phase I drilling at Cerro Bayo, successfully intersecting multiple zones of gold and silver mineralization associated with a large fertile low-sulphidation epithermal system within the Deseado Massif. Initial drilling confirmed high-grade mineralization within structurally controlled vein systems, while broad mineralized zones beginning near surface highlighted the scale potential of the broader hydrothermal system. Phase II drilling is planned for Q3 2026 and will include follow-up drilling at Cerro Bayo, as well as initial drill testing at the La Flora project, where previous surface sampling returned values up to 82 g/t gold within vein zones.
Technical
Presentation