Latin AmericanMinerals Inc. said April 1 that it has signed a nonbinding termsheet with SilverStreamSEZC for a gold streaming purchase agreement for its gold project inParaguay.
SilverStream will provide Latin American Minerals with US$1million in three tranches, with US$500,000 deliverable on signing of theagreement and two payments of US$250,000 based on near-term productionmilestones.
The company will then have the right to purchase 43% oftotal Paso Yobai gold production, at a price per ounce equivalent to the lessof US$350 per ounce or 80% of the market gold price, until 1,500 ounces havebeen delivered. Afterwards, the metal stream will reduce to 7.5% of productionfor the mine life.
A representative of SilverStream will be appointed to theLatin American Minerals' board.
Proceeds from the streaming agreement will also go towardsimproving production at the mine.
Latin American Minerals also said it plans to raise up toC$500,000 in a private placement, offering units at 12 Canadian cents each.Each unit will include 1 common share and 0.5 of a purchase warrant; 1 wholewarrant enables the holder to acquire 1 share at 18 cents within a two-yearwindow.
Warrants will be callable once shares have traded at 30Canadian cents each for more than 20 consecutive days.