Latin Metals Inc. (TSXV: LMS, OTCQB: LMSQF) has announced the receipt of a US$250,000 cash payment from Daura Gold Corp. (Daura) related to the Cerro Bayo and La Flora properties. The payment consists of US$150,000 payable to the underlying vendor and US$100,000 payable to the Company.
Option Agreement Terms
Under the option agreement, Daura may earn up to a 75% interest in the projects (80% with a top-up right) by meeting several conditions. These include staged exploration payments totaling US$1,700,000 (with US$300,000 already paid), aggregate payments of US$400,000 to the underlying vendor (US$250,000 paid), completion of exploration work commitments including 28,000 metres of drilling (1,850 metres completed), and delivery of a technical report prepared in accordance with Form 43-101F1 containing a mineral resource estimate.
Cerro Bayo Phase I Drilling Completed
Daura has completed the first phase of drilling at Cerro Bayo, totaling 1,850 metres of diamond drilling in 18 holes. The program tested multiple target areas across a district-scale epithermal system defined by prior mapping, geochemistry, and geophysical surveys. This satisfies the initial drilling commitment of at least 1,500 metres by April 30, 2026. Assay results are pending and expected in May 2026, representing a key catalyst for the Company.
Phase II Drilling Plans
Daura is planning a Phase II drill program in Q3 2026, expanding exploration across both Cerro Bayo and La Flora. At Cerro Bayo, Phase II will focus on follow-up drilling, including step-out and extension holes to test continuity and further define zones identified during Phase I. At La Flora, the program will include initial drill testing of this emerging high-grade target.
La Flora High-Grade Surface Results
La Flora is a recently defined high-priority, high-grade target, following Latin Metals' identification of visible gold and high-grade epithermal mineralization at surface. Previous surface sampling returned grades of up to 82 g/t gold and 1,239 g/t silver.
