M&A / Property
Magna Terra Signs Option Agreement with Andean Metals for the Luna Roja Project in Santa Cruz, Argentina
MTT · Price
Executive Summary
- Magna Terra Minerals and Andean Metals entered a definitive option agreement granting Andean the right to acquire 100 % of the Luna Roja Project for total consideration of C$2.375 million in cash and shares over four years.
- The agreement includes a structured payment schedule (cash plus share issuances) and gives Magna Terra a nominee seat on Andean’s board.
- Luna Roja is an advanced, drill‑ready precious‑metal project with historic intercepts of up to 1.01 g/t Au and 4.6 g/t Ag over 42 m, supporting significant discovery potential.
Key Details
- Consideration: C$2,375,000 total
- Cash payments: C$675,000 (distributed across six milestones)
- Share consideration: C$1,700,000 worth of Andean common shares (issued at varying cash‑per‑share rates)
| Milestone | Cash (C$) | Cash/Share (C$) | Total (C$) |
|---|---|---|---|
| 60‑day exclusivity (paid) | 75,000 | – | 75,000 |
| Signing definitive agreement (paid) | 100,000 | – | 100,000 |
| 1st Anniversary | 125,000 | 275,000 | 400,000 |
| 2nd Anniversary | 125,000 | 375,000 | 500,000 |
| 3rd Anniversary | 125,000 | 475,000 | 600,000 |
| 4th Anniversary | 125,000 | 575,000 | 700,000 |
| TOTAL | 675,000 | 1,700,000 | 2,375,000 |
- Board Rights: Magna Terra retains the right to appoint a nominee to Andean’s Board of Directors under defined conditions.
- Project Highlights – Luna Roja (Argentina):
- ~10,000 ha across three exploration licences; year‑round road access.
- Historic drill hole LR_DDH002 (2019) intersected 75 m @ 0.62 g/t Au & 5.6 g/t Ag, including 42 m @ 1.01 g/t Au & 4.6 g/t Ag.
- Drill hole LR_DDH001 returned 51.4 m @ 0.26 g/t Au & 9.37 g/t Ag, with a high‑grade zone of 2 m @ 1.08 g/t Au & 79.6 g/t Ag.
- 3 km × 800 m Au trend identified by anomalous soil geochemistry and IP signatures; multiple drill‑ready targets (Estrella del Norte, Orion, Cruz del Sur, Signos).
- Royalty: Project subject to a 1 % Net Smelter Return payable to Orogen Royalties Inc.
- Finder’s Fee: Magna Terra will receive a 5 % finder’s fee on each payment received from Andean.
- Other Projects: No agreement reached for the Boleadora Project at this time; it remains available for purchase or option.
Notable Quotes
- “We are very excited to partner with the Andean Metals team on the drill‑ready Luna Roja precious metals project… This transaction further supports our corporate strategy of leveraging our deep project portfolio to provide non‑dilutive liquidity while maintaining upside exposure.” – Lew Lawrick, President & CEO, Magna Terra Minerals Inc.
- “This transaction represents a significant step forward for Andean Metals as we establish a strong foothold in one of the most geologically prospective and underexplored gold‑silver belts in the world.” – Joaquin Mignaquy, CEO, Andean Metals Corp.
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Jul 15, 2026 · 08:01