Latin American in Argentina

Capital pool company Latin American Minerals (LAT-V) has taken over the Argentine properties of Golden China Resources (AUC-V) in a qualifying transaction.

Golden China’s Argentine subsidiary, Arminex, will sell its Los Menucos and Uspallata Graben properties to Latin American for 1 million shares, half on closing and half a year later. Arminex retains 1% net smelter return royalties on the two properties, which Latin American can buy out for $1 million each.

Additional payments of 1 million shares or $400,000 for Los Menucos and 500,000 shares or $200,000 for Uspallata are due on the second anniversary, and a payment of 500,000 shares or $300,000 for Uspallata is due on the third anniversary. In each case, Latin American has the choice of paying in shares or cash.

Golden China, which is concentrating its efforts on three properties in Guizhou province, holds a 51% interest in Arminex.

Los Menucos is a 921-sq.-km package of 31 mineral licences in Rio Negro province, with late Paleozoic and early Mesozoic volcanic rocks that host epithermal gold mineralization. Three of the Los Menucos prospects — Cuya, Caltrauna, and El Puesto — have been drilled. Uspallata is in San Juan province and covers 203 sq. km of Andean volcanic and intrusive rocks.