The property spans 3,500ha and is prospective for copper and gold.
Under the agreement, Latin Metals can earn a 75% interest in the 3,500-hectare Huachi property over four years by spending $1 million (C$1.37 million) on exploration and making $1 million in cash payments to Golden Arrow. After securing the 75% interest, Latin Metals has a 90-day option to acquire the remaining 25% for a $2 million cash payment. If Latin Metals opts not to exercise this right, a joint venture will be formed, with Latin Metals holding 75% and Golden Arrow retaining 25%. Future funding will be proportional to each party’s stake, and if either party’s interest falls below 15%, it will convert to a 1% net smelter return royalty.
Exploration activities, including drilling, will commence following the approval of an environmental permit. The Huachi property, part of Golden Arrow’s 120,000-hectare portfolio in Argentina, is adjacent to Latin Metals’ Esperanza copper-gold project, enhancing its potential for copper and gold discoveries.
Golden Arrow’s president and CEO, Nikolaos Cacos, stated: “This agreement marks the third strategic option agreement we have signed in recent years as part of our efforts to advance our non-core assets. Success on any of these projects is good for Golden Arrow and our shareholders. Huachi now joins our Mogote Copper-Gold project that is under option to Mogotes Metals as part of their Filo Sur project, and our Caballos Copper-Gold project that is under option to Hanaq Argentina.”
The agreement supports Golden Arrow’s approach to leveraging partnerships to unlock value from its Argentine assets while maintaining exposure to potential upside. For Latin Metals, the deal strengthens its exploration portfolio in a promising mining region, fostering collaborative development of the Huachi property.
This partnership aligns with Argentina’s growing mining sector, where projects like Huachi contribute to regional economic development through responsible exploration. The structured option terms ensure both companies can advance the project efficiently, supporting sustainable growth in San Juan Province’s mineral resource sector.
