LatinGold Inc. Acquires 60% Interest in Mexico's Guanajuato Region Properties

LatinGold Inc. has entered into an agreement with Minera San Jorge, S.A. de C.V. to acquire up to a 60% working interest in two gold-silver properties located in Mexico's Guanajuato region. The properties, Pinguicos and Pozos, consist of approximately 25,650 hectares and have the potential for large gold-silver ore deposits. The acquisition marks a significant shift in focus for the company, which has wound down its interests in Colombia to reduce carrying costs.

Key Takeaways:

• LatinGold Inc. has entered into an agreement to acquire up to a 60% working interest in two gold-silver properties in Mexico's Guanajuato region.
• The properties, Pinguicos and Pozos, consist of approximately 25,650 hectares and have the potential for large gold-silver ore deposits.
• The initial work program on the Pinguicos property includes 2,000 meters of reverse circulation and 500 meters of diamond drilling on four targets.
• Drilling is expected to commence before the end of April, with four primary target areas scheduled for drill testing.
• The company plans to issue 250,000 common shares to the vendor on execution of a definitive agreement, and undertake exploration expenditures of U.S. $250,000 over six months to earn a 30% interest in the properties.
• During a second six-month period, LatinGold may earn an additional 30% interest by spending U.S. $250,000 on further exploration and issuing another 250,000 common shares.
• The properties will be subject to a 2% net smelter return royalty.
• The company plans a private placement of 4,000,000 shares at $0.12 per share for total proceeds of $480,000, subject to regulatory approval, to provide additional funds for the earn-in.
• Michael Farrugia, the Chairman of the Company, has assumed the position of President, replacing Gary German who has resigned as President and a Director to pursue other interests.
• Robert Whittall, Vice President Finance and Chief Financial Officer, has joined the Board of Directors.

Statistics:

• 25,650 hectares: the total area of the properties to be acquired by LatinGold Inc.
• 60%: the maximum working interest that LatinGold may acquire in the properties.
• 4 targets: the number of targets scheduled for drilling on the Pinguicos property.
• 2,000 meters: the extent of reverse circulation drilling planned on the Pinguicos property.
• 500 meters: the extent of diamond drilling planned on the Pinguicos property.
• U.S. $250,000: the exploration expenditures required to earn a 30% interest in the properties.
• 4,000,000 shares: the number of shares to be issued in a private placement to provide additional funds for the earn-in.
• $480,000: the total proceeds expected from the private placement.
• 2%: the net smelter return royalty applicable to the properties.

Sources:

• Business Wire - "LatinGold Inc. Acquires up to 60% Interest in Mexico's Guanajuato Region Properties"
• LatinGold Inc. - www.latingoldinc.com