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 (cash and Andean common 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 results, including a 75 m intercept of 0.62 g/t Au (up to 1.01 g/t Au) and a 51.4 m intercept of 0.26 g/t Au, underscoring its discovery potential in the prolific Deseado massif.

Key Details

• Consideration: $2,375,000 payable in cash and Andean common shares (see attached payment schedule).
• Retention Rights: Magna Terra may appoint a nominee to Andean’s board of directors under defined conditions.
• Royalty: 1 % net smelter return royalty payable to Orogen Royalties Inc. on any future production.
• Finder’s Fee: Magna Terra will receive a 5 % finder’s fee upon each payment received from Andean.
• Project Size & Access: ~10,000 ha across three licences; year‑round road access via Fitz Roy (≈80 km).
• Geology & Targets: Situated on a 3 km segment of the northwest‑striking Via Lactea fault; includes Au‑Ag veins, IP anomalies, and multiple drill‑ready targets (Estrella del Norte, Orion, Cruz del Sur, Signos).
• Historical Drilling (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 (1,184 m total) completed in 2019.
• Future Plans: Andean will focus on advancing Luna Roja; no current agreement for the Boleadora project (still available).

Notable Quotes

“This transaction further supports our corporate strategy of leveraging our deep project portfolio to provide non‑dilutive liquidity… while maintaining upside exposure through equity ownership and royalties.” – Lew Lawrick, President & CEO, Magna Terra Minerals.

“We are excited to build on Magna Terra’s excellent technical work and begin advancing Luna Roja through systematic exploration and drilling.” – Joaquin Mignaquy, CEO, Andean Metals.