Magna Terra options Luna Roja to Andean Metals

Executive Summary

• Magna Terra Minerals Inc. entered a definitive option agreement granting Andean Metals Corp. the right to acquire 100 % of the Luna Roja project for total consideration of $2,375,000 in cash and shares.
• The transaction provides non‑dilutive liquidity to Magna Terra while allowing it to retain board nominee rights and a 1 % NSR royalty on the project.
• Luna Roja hosts early‑stage drill‑ready gold‑silver discoveries, including a 75 m intercept of 0.62 g/t Au (up to 1.01 g/t Au) from a 2019 hole, underscoring its exploration upside.

Key Details

• Consideration: $2,375,000 payable in cash and Andean common shares (see attached payment schedule).
• Structure: Option agreement gives Andean the right to earn a full interest over a four‑year period; Magna Terra retains a nominee seat on Andean’s board.
• Finder’s Fee: Magna Terra will receive a 5 % finder’s fee upon receipt of each payment from Andean.
• Royalty: Project subject to a 1 % net smelter return (NSR) royalty payable to Orogen Royalties Inc.
• Project Size & Access: ~10,000 ha across three licences; year‑round road access via Fitz Roy, 80 km NE.
• Key Geology: Located on a 3 km segment of the northwest‑striking Via Lactea fault within the Deseado massif, an area hosting world‑class epithermal gold‑silver systems.
• Drill Results (2019):
• Hole LR_DDH002 – 75.0 m @ 0.62 g/t Au & 5.6 g/t Ag (incl. 42.0 m @ 1.01 g/t Au & 4.6 g/t Ag).
• Hole LR_DDH001 – 51.4 m @ 0.26 g/t Au & 9.37 g/t Ag (incl. 2.0 m @ 1.08 g/t Au & 79.60 g/t Ag).
• Exploration Work to Date: 360 rock chip/float samples, 741 trench samples, 715 soil samples, 17.6 km of IP surveying; eight diamond drill holes totaling 1,184 m in 2019.
• Future Plans: Andean will focus on advancing Luna Roja; no current agreement for the Boleadora project (still available for option/purchase).

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…” – Lew Lawrick, President & CEO, Magna Terra Minerals.

“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.