Latin Metals Options Organullo Gold Project, Salta Province, Argentina

Latin Metals Inc. (LMS) has signed a binding letter agreement, distinct from a definitive agreement, granting privately held Aumin Argentina S.A.U. an exclusive option to acquire 100% of the Organullo Gold Project in Salta Province, Argentina. The project was previously abandoned by AngloGold Ashanti in late 2025.

Under the terms of the deal, Aumin will pay Latin Metals an aggregate base consideration of US$4.0 million in cash over six years. Payments began with US$100,000 upon signing, with a further US$150,000 due upon the execution of a Definitive Agreement or delivery of a Confirmation Notice. Aumin is committed to a drilling program requiring a minimum of 3,000m by Year 1, 15,000m by Year 3, and 40,000m by Year 6. Alternatively, Aumin may pay US$350 per undrilled metre in lieu of the first-year 3,000m requirement.

Upon exercise of the option, Latin Metals will elect either a 19.9% equity stake in Aumin's listed vehicle, including board representation, or a 2% Elective NSR royalty. An accelerated acquisition path allows Aumin to pay all remaining option cash plus an additional US$16 million after 15,000m of drilling has been completed. This action extinguishes the equity right, leaving Latin Metals with a 2% Acceleration NSR royalty. Additionally, Aumin holds the right to repurchase 0.5% of the royalty for US$10M or 1% for US$20M within three years. The total potential cash value for Latin Metals is up to US$24M on the non-accelerated path, or up to US$40M on the accelerated path including royalty buy-back.

A listing requirement on the TSX-V or another recognized exchange in Canada, the US, Australia, or England is a condition of the deal, unless the accelerated route is taken. Aumin is led by Hernán Zaballa, founder of AbraSilver Resource Corp. and acquirer/developer of the Diablillos silver-gold project, which currently holds a market capitalization of approximately $2.2 billion.

The Organullo Gold Project is 100%-owned by Latin Metals and holds SEIR approval for up to 11,900m of diamond drilling. A 2012 GeoRes report, described as conceptual and not a resource estimate, lists exploration targets of 19.8Mt at 0.94 g/t Au (600koz) to 31.6Mt at 0.92 g/t Au (940koz) at a 0.5 g/t cut-off.

Latin Metals Inc. (LMS) has entered into a new partnership with Aumin to advance its Organullo project in Argentina, marking a significant shift in the asset’s development trajectory. The agreement, announced on September 21, 2026, replaces a previous framework with AngloGold Ashanti that was terminated in October 2025. Under the new terms, Latin Metals stands to receive up to US$40M in total potential consideration, a substantial increase from the earlier structure, though the deal involves a private, pre-listing counterparty and a more contingent, longer-dated schedule.

The history of the Organullo project has seen rapid changes. On September 29, 2025, AngloGold announced a Phase I drill program consisting of 10 holes totaling approximately 6,000m, describing the site as "one of the most compelling untested gold exploration targets in South America." At that time, the Malena VII property was added to the option. However, on October 30, 2025, AngloGold terminated the option, effective January 27, 2026, citing a change in its global Greenfields strategy. The company cancelled the Phase I program, having spent approximately US$3.3M on the property.

Aumin, the new partner, brings a track record that includes the AbraSilver/Diablillos project. The team behind Aumin previously acquired a non-core asset from a major, SSR Silver Standard, and built a company valued at approximately US$2.2B. This partnership restores the prospect-generator thesis for Organullo, which had been negatively impacted by the AngloGold exit. The total potential consideration of US$24M–40M is large relative to Latin Metals’ market capitalization of approximately C$30.5M and runs alongside a retained royalty and equity stake.

Despite the headline economics, the agreement remains a binding letter agreement rather than a definitive agreement. Aumin has up to four months, including one month for extensions, to complete due diligence. Near-term cash flows are minimal, with US$100,000 already paid and US$150,000 due upon the signing of a definitive agreement. The US$4M base payment is spread across six years. The larger headline figures of US$24M–40M are contingent on several conditions, including Aumin’s listing, full exercise of options, acceleration payments, and a royalty buy-back.

Specifically, the US$16M acceleration and the buy-back are contingent on Aumin funding more than 15,000m of drilling and completing a listing. The private company has not yet publicly demonstrated the capital required for these milestones. Furthermore, the exploration target of 600,000 to 940,000 ounces is conceptual and dates back 14 years, with no NI 43-101 resource currently existing. While the project is located in Argentina, comparisons to the Salares Norte project are explicitly disclaimed, as they involve different commodities and geologies in a different country.

This development aligns with Latin Metals’ broader strategy of replacing lost partners and adding new ones, following the Minsur/Lacsha deal announced on August 18, 2026, and the Geomorphic project-generation agreement on August 31, 2026. The Organullo partnership represents the third leg of this strategy, offering positive execution and optionality, though much of the potential value is back-end loaded and conditional.

Latin Metals Inc. (TSXV: LMS; OTCQB: LMSQF) is a Vancouver-based prospect generator operating copper, gold, and silver projects in Peru and Argentina. The company advances early-stage assets to partner-funded exploration via option and earn-in agreements, retaining carried interests, joint ventures, equity, or net smelter return (NSR) royalties.

The company’s model relies on a portfolio of 16 projects rather than a single flagship asset. Key holdings include Organullo, a gold project in Salta subject to today’s release; Cerro Bayo and La Flora in the Deseado Massif, associated with Daura Gold; Lacsha, a copper project in Peru with a letter of intent from Minsur; Zaha, a copper-gold project in Moxico; and a sediment-hosted copper package of approximately 500,000 hectares comprising Ventana, Solario, Terraza, and Mirador. The company also holds royalty assets Mina Angela (1.25% NSR) and El Quemado (2.0% NSR).

Organullo is 100%-owned and approved by SEIR for up to 11,900 meters of drilling. It was previously explored at the expense of Latin Metals and AngloGold, with a conceptual 2012 exploration target of 600,000 to 940,000 ounces of gold at grades of 0.92 to 0.94 grams per tonne. This target has never been converted into a resource.

The company’s leadership includes CEO Keith Henderson, who has over 30 years of experience including the sale of Velocity Minerals and Pampa de Pongo; President Dr. Mario Castelli; VP of Exploration Eduardo Leon; CFO Dani Palahanova; and VP of Investor Relations Elyssia Patterson.