Latin American Minerals Inc.

Latin American Minerals Inc.

June 16, 2009 16:06 ET

Latin American Minerals Signs Heads of Agreement to Option Its Tendal Massive Sulphide Zinc, Lead and Copper Project in Argentina

TORONTO, ONTARIO--(Marketwire - June 16, 2009) - Latin American Minerals Inc. (TSX VENTURE:LAT) ("Latin American" or the "Company") is pleased to announce that it has entered into heads of agreement with Cadillac Ventures Inc. ("Cadillac") whereby, Cadillac has the right to earn a 50% interest in the Company's Tendal VMS Project.

The Tendal VMS Project (the "Project") is located in the La Rioja Province of NW Argentina and covers 36,434 hectares at an elevation of 3,000m in an accessible, current and historical mining district. The Tendal project encompasses several distinct targets, each of which have undergone varying amounts of exploration as carried out by Latin American, the most senior of these being the Verdiona Target, the Las Catitas Target and the Yegua Pircada Target.

Under the terms of agreement Cadillac will make a series of escalating cash payments totalling US$300,000, and by spending US$5.0 million on exploration, both over three years as follows:

Cash Option Payments Exploration Expenditures

On signing US$ 25,000
First Anniversary US$ 50,000 On or before the 1st US$ 1.0 million
Second Anniversary US$ 75,000 On or before the 2nd US$ 1.5 million
Third Anniversary US$ 150,000 On or before the 3rd US$ 2.5 million

TOTAL US$ 300,000 TOTAL US$ 5.0 million

Cadillac is not obligated to make payments and may terminate at any time. On completion of all payments the joint venture will be Latin American as to 50% and Cadillac as to 50%. The joint venture is formed now, and during exploration and expenditure of Cadillac funds, Cadillac shall be operator and make all decisions regarding exploration.

After the 50%/50% level is completed, non participation will trigger a standard dilution clause. Cadillac shall have a one-time right to earn an additional 10% by taking the project to feasibility, which it must elect within 60 days of the 50%/50% level. If either party's participating interest falls below 15%, such interest will automatically convert to a 3% NSR. The other party shall have a one time right to purchase 1% of the 3% NSR for US$ 1,000,000 and a second 1% of the 3% NSR for US$ 2,000,000. The diluted party shall retain a 1% NSR. At the completion of feasibility and upon a production decision Cadillac will have the one time option to purchase a further 10% interest in the project by paying to LAT US$2.5 million.

The transaction is subject to board approval by both parties, a site visit by Cadillac to be completed with 60 days, and TSX Venture Exchange and other applicable regulatory approval.

Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of minerals projects in under-explored but highly prospective countries of Latin America.

This news release contains forward-looking statements, which can be identified by the use of statements that include words such as "could", "potential", "believe", "expect", "anticipate", "intend", "plan", "likely", "will" or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation's beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation's ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation's estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information