Latin Metals Inc. (TSXV: LMS | OTCQB: LMSQF) announced on September 21, 2026 that it has entered into a binding letter agreement granting Aumin Argentina S.A.U. an option to acquire a 100% interest in its Organullo Gold Project in Salta Province, Argentina. The deal includes aggregate Option cash payments of US$4.0 million and cumulative drilling commitments extending over six years, with total potential cash consideration reaching up to US$40 million under an accelerated acquisition scenario. The transaction represents a significant partnership for Latin Metals, which operates as a prospect generator seeking option partners to fund exploration across its multi-project portfolio.

Key Points

  • Latin Metals Inc. (TSXV: LMS | OTCQB: LMSQF) is a Vancouver-based copper, gold, and silver exploration company operating in Peru and Argentina
  • Aumin Argentina S.A.U. has been granted an exclusive option to acquire 100% of the Organullo Gold Project in Salta Province, Argentina
  • Aggregate Option cash payments total US$4.0 million; potential total cash consideration reaches up to US$40 million under an accelerated acquisition with royalty buy-back
  • Latin Metals retains the right to elect either a 19.9% equity stake in Aumin's listed vehicle or a 2% Net Smelter Returns royalty upon Option exercise

Organullo Project Profile and Existing Exploration Foundation

The Organullo Gold Project is a 100%-owned gold exploration asset held through Cardero Argentina S.A., a wholly owned subsidiary of Latin Metals. The project holds an approved Social and Environmental Impact Report authorising up to 11,900 metres of diamond drilling. A 2012 report by Australian consulting firm GeoRes identified potential exploration targets ranging from 19.8 million tonnes at 0.94 g/t gold to 31.6 million tonnes at 0.92 g/t gold at a 0.5 g/t cut-off. The company cautions these are conceptual exploration targets and do not constitute a defined mineral resource. AngloGold Ashanti previously optioned the project and identified three priority target areas associated with high-sulphidation epithermal and porphyry-style geological environments.

Structured Option Payment Schedule and Drilling Commitments

Under the binding letter agreement, Aumin has already paid an initial US$100,000 within ten days of signing. A further US$150,000 becomes payable upon execution of a definitive agreement or delivery of a confirmation notice. Subsequent annual cash payments escalate from US$400,000 through to US$950,000, totalling US$4.0 million across the full six-year term alongside cumulative drilling commitments of 3,000 metres, 15,000 metres, and 40,000 metres at the first, third, and sixth anniversaries respectively. Aumin also holds an accelerated acquisition right, exercisable after completing 15,000 metres of drilling, requiring payment of all remaining Option cash plus an additional US$16.0 million.

Aumin's Management Background in Argentine Mineral Exploration

The team behind Aumin, led by Hernán Zaballa, brings experience spanning geology, Argentine mining law, transaction structuring, and in-country operational and environmental expertise. The release states the group previously negotiated the acquisition of the Diablillos silver-gold project from Silver Standard Resources Inc. in 2016 through Huayra Minerals Corp., subsequently forming what became AbraSilver Resource Corp. The release notes AbraSilver currently holds a market capitalisation of approximately $2.2 billion, though Latin Metals explicitly cautions that Diablillos economics are not indicative of Organullo's mineral potential, and Latin Metals holds no interest in the Diablillos deposit.

Shareholder Value Mechanisms Under the Option Structure

Latin Metals retains meaningful upside through two post-exercise election options: a 19.9% ownership stake in Aumin's listed vehicle with board representation, or a 2% Net Smelter Returns royalty. Under either royalty scenario, Aumin holds a three-year right to repurchase up to half the applicable royalty — 0.5% for US$10.0 million or 1.0% for US$20.0 million — leaving Latin Metals with a minimum 1% royalty and no further buy-back exposure. The immediate share price impact was not clear from available public information.