Latin Metals and Minsur S.A. Agree Option Terms for Lacsha Copper Project, Lima Department, Peru

Latin Metals Inc. (LMS) has entered into a non-binding Letter of Intent with Minsur S.A. for the company’s wholly-owned Lacsha Copper Project in the Lima Department of Peru. The two parties will now work toward definitive agreements within 90 days. The proposed transaction is a project-level earn-in rather than an equity investment in Latin Metals.

Minsur can earn a 75% interest in Lacsha over a six-year option period by paying US$2.62 million in cash to Latin Metals and funding 60,000 metres of drilling. The cash payment schedule includes US$220,000 on the Effective Date, US$250,000 on the Commencement Date, followed by annual payments ranging from US$250,000 to US$500,000. The drilling schedule requires 3,000 metres by the first anniversary, increasing to 15,000 metres by the sixth anniversary, for a total of 60,000 metres. The Effective Date and Commencement Date payments of US$220,000 and US$250,000 are described as firm commitments, but both occur only after definitive agreements are executed and required drilling approvals are received. Minsur earns no interest in Lacsha until the option terms have been met.

After exercising the 75% earn-in, Minsur has 180 days to buy the remaining 25% for US$20 million, giving Minsur 100% and converting Latin Metals' interest to a 2% net smelter returns royalty. Minsur may accelerate the US$20 million buy-out at any time. If the buy-out occurs, Minsur has three years to buy back half of the 2% NSR for an additional US$20 million, leaving Latin Metals with a 1% NSR. Maximum headline cash to Latin Metals is therefore US$42.62 million if both the buy-out and royalty buy-back occur.

If Minsur does not exercise the buy-out, a 75/25 joint venture would be formed; Latin Metals may then convert its JV interest to a 2% NSR. If Latin Metals' JV interest is diluted below 10%, it automatically converts to a 1% NSR. The release also notes shareholder approval of the Omnibus Share Incentive Plan on July 2, 2026, subject to final TSX Venture Exchange acceptance.

Latin Metals Inc. (LMS) announced a new partnership for its Lacsha project, which the company had previously described as fully drill-permitted, partner-ready, and seeking an exploration partner. The partner is Minsur, a multi-billion-dollar Peruvian mining company part of the Breca Group. Minsur owns the San Rafael tin operation, the Pucamarca gold mine, the Pisco smelter, and holds a controlling interest in the Mina Justa copper mine.

Under the proposed transaction, Minsur would fund exploration and potential development without Latin Metals issuing shares, consistent with the prospect generator model. The headline maximum cash payment of US$42.62 million is conditional, assuming successful exploration, Minsur exercising the 75% earn-in, Minsur exercising the US$20 million buy-out, and Minsur later exercising the US$20 million royalty buy-back. Near-term firm cash is modest, totaling US$470,000 between the Effective Date and Commencement Date, contingent on signing definitive agreements and obtaining commencement approvals.

The agreement includes a 60,000m of Minsur-funded drilling, a substantial non-dilutive exploration commitment, although no mineral resource or reserve has yet been defined at Lacsha. Compared with Latin Metals' cash of about C$2.32 million and recent market capitalization of roughly C$35 million, the optionality is significant, but is not yet a completed monetization.

Latin Metals Inc. (LMS) is a copper, gold, and silver exploration company operating in Peru and Argentina under a prospect generator model. The company states it has 16 projects and seeks option agreements with major mining companies to fund exploration, minimizing dilution.

The most recent release focuses on the wholly-owned Lacsha Copper Project in Peru, located about 130 km north of Lima with road access, nearby power, and proximity to port facilities. Lacsha has an existing valid FTA permit, community agreements, and drill permits, and was advanced for less than C$1 million before the Minsur LOI. Lacsha is described as part of Peru's emerging Cretaceous Copper Belt, with copper-molybdenum geochemistry and coincident geophysical anomalies.

Other key projects include Cerro Bayo and La Flora in Argentina, optioned to Daura Gold; Zaha, optioned to Moxico Resources; and Organullo, which is fully drill-permitted after AngloGold Ashanti terminated its option. No formal NI 43-101 mineral resources or reserves are reported for Latin Metals projects.

Royalty context: - Lacsha has no disclosed underlying vendor royalty; under a buy-out, Latin Metals would retain a newly created 2% NSR, or 1% if Minsur exercises the royalty buy-back. - Existing royalty assets include Mina Angela at 1.25% NSR and El Quemado at 2.0% NSR. - Cerro Bayo/La Flora are subject to a 0.75% underlying vendor NSR, with a partial repurchase right.