Could you introduce Latin Metals to our readers?

Latin Metals has operated as an exploration company for several years, particularly in Latin American countries, including Peru and Argentina. Nonetheless, the company rebranded a few years ago to Latin Metals when we began our work with the Prospect Generator model. Our key objective then was to diversify the company. We saw particular promise in Peru as the country's mining industry had been busy in past decades but was going through a relatively quiet period. We took this as an opportunity to acquire new properties and today we have a large copper-focused portfolio in Peru.

How does the Prospect Generator model used by Latin Metals benefit shareholders?

The Prospect Generator model is not new, though its use is fairly limited. Within North and South America, there are only roughly 35 companies that successfully follow this model. We consider ourselves in that elite group, and our technical expertise is critical to the process. When acquiring projects, we look at multiple jurisdictions and commodities before acquiring projects and beginning the low cost surface exploration. Latin Metals' aim is to build a picture for each property that clearly demonstrates its value. From there, rather than spending money on drilling, we secure partners who finance the project moving forward. While the discovery is thus made by the partner, we retain a minority interest. This presents a clear benefit for our shareholders as their stock in the company is not diluted as a result of multiple large financings. Over a period of 10 years we aim to have roughly CAD$50-75 million contributed by our partners, while in this period we will only expect to raise a few million. This model presents excellent shareholder value.

Can you name some successful partnerships that Latin Metals has undertaken?

Latin Metals has previously had partnerships with Hochschild Mining, Newmont and Yamana Gold. Within the past year, we have done deals with Libero Copper & Gold, AngloGold Ashanti, and Patagonia Gold. We retain a minority interest in all cases. The deals we completed last year include significant cash payments to Latin Metals as well as significant exploration commitments.

How does Latin Metals approach its projects in Peru, and what are your main assets in the country?

ESG-related matters have become our most important concern when looking into all projects, especially in Peru. When we select properties, we investigate not only the prospects for mineral discovery but also the communities with whom we will be working with. We aim to make acquisitions in areas where there are fewer communities, and of those communities, we only want to interact with ones who are prepared to work with us.

One of our main projects at this moment is the Lacsha property, which we began working on in 2020. Initially, we made a deal here that allowed us to engage in early-stage work. In December 2021, we signed a three-year deal with the community, which will enable us to secure a drill permit. In turn, we are confident this will allow us to find a partner.

What are the challenges and opportunities for exploration companies operating in Peru?

The Peru mining industry is currently operating within a challenging political climate. That said, as a Prospect Generator, this does not concern me. Mining countries typically go through political cycles with the government. Because we are working on relatively early-stage exploration projects that will not transition into production for a while, we believe that the political environment will likely be more favorable by the time one of our properties advances to that stage. We have long-term belief in Peru as a mining country.

To conclude, what are Latin Metals’ priorities for 2022?

Our plan for the next year is to acquire more properties and advance the projects we currently have towards getting partners. We are careful to select good partners that have significant financial capabilities and are technically competent. Last year, we advanced three projects, and I would like to do the same in 2022.

The most important thing for investors to look at, particularly within the Prospect Generator space, is whether a company successfully acquires the right properties and lands deals with partners. Looking back on 2021, it is clear Latin Metals has done that. We hope investors see that we will continue with this success.