Daura Gold Secures Option to Acquire up to 80% Interest in the High-Grade Cerro Bayo and La Flora Gold-Silver Projects, Santa Cruz Province, Argentina
Executive Summary
- Daura Gold Corp. entered into a binding letter agreement with Latin Metals Inc., granting Daura the right to earn up to an 80% interest in the Cerro Bayo and La Flora gold‑silver projects in Argentina’s Deseado Massif.
- The option requires aggregate payments of US $1.7 million to Latin Metals, assumption of a US $0.4 million payment to the underlying vendor, completion of extensive exploration work (28,000 m drilling, IP surveys), and delivery of a NI 43‑101 technical report with a mineral resource estimate.
- A “Top‑Up Right” allows Daura to increase its interest to 80% by paying US $7.00 per gold‑equivalent ounce for measured/indicated resources and US $5.00 per ounce for inferred resources; additional royalty purchase provisions are also outlined.
Key Details
- Option Structure:
- Earn up to 75% (or 80% with Top‑Up) interest in the Projects over a 38‑month option period from the effective date.
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Total required payments: US $1,700,000 to Latin Metals + US $400,000 to Underlying Vendor.
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Payment Schedule & Commitments:
| Milestone | Payment to Latin Metals (USD) | Assumed Payment to Vendor (USD) | Drilling Required (m) | |-----------|------------------------------|---------------------------------|-----------------------| | Within 3 days of effective date | $200,000 (cash or shares) | $100,000 | – | | By April 30 2026 | $100,000 | $150,000 | 1,500 | | By Dec 31 2026 | $150,000 | – | 1,500 | | By June 15 2027 | – | $150,000 | – | | By Dec 31 2027 | $250,000 | – | 10,000 | | By Dec 31 2028 | $1,000,000 | – | 15,000 | | Total | $1,700,000 | $400,000 | 28,000 | -
Irrevocable Commitments: $450,000 (combined payments) and 1,500 m of drilling are non‑refundable.
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Exploration Work Requirements (by Apr 30 2026):
- 50 km line‑kilometres IP profiling
- 150 km line‑kilometres gradient array IP
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1,500 m drilling
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Total Exploration Commitment Prior to Option Exercise: 28,000 m drilling.
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Top‑Up Right Pricing (upon exercising):
- US $7.00 per gold‑equivalent ounce for measured & indicated resources
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US $5.00 per gold‑equivalent ounce for inferred resources
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Joint Venture Formation: Upon exercise, Daura will hold 75% (or 80% with Top‑Up) and Latin Metals 25% (or 20%). Daura will also assume Latin Metals’ right to repurchase a portion of the existing 0.75 % NSR royalty for US $1 million.
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Royalty Provisions:
- If either party’s interest falls below 10%, it converts to a 2 % NSR royalty, with half (1 %) purchasable by the other party for US $5 million within three months after a production decision.
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Post‑Top‑Up expiry, Latin Metals may convert its JV interest to a 3 % NSR royalty; Daura can purchase 33.33 % of this converted royalty for US $5 million under similar timing constraints.
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Project Highlights:
- Cerro Bayo & La Flora sit in the Deseado Massif, which has produced >600 Moz Ag and >20 Moz Au since 1990.
- Surface samples: up to 71 g/t Au / 150 g/t Ag (La Flora) and 82 g/t Au / 1,239 g/t Ag (La Flora); 2.3 g/t Au / 600 g/t Ag (Cerro Bayo).
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21 fully permitted drill pads approved via EIA (early 2025).
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Qualified Person: Stuart Mills, QP (Daura Vice President of Exploration), reviewed and approved the technical information.
Notable Quotes
“As Daura continues to advance its flagship Antonella Project in Peru, this agreement provides the Company with excellent optionality on a high‑quality, drill‑ready target in the Deseado Massif….” – Mark Sumner, President, Daura Gold Corp.