Latin Metals Adds Fully-Funded Partner Deal for Peru's Lacsha Copper-Molybdenum Project

• Latin Metals is processing an option agreement with Minsur covering the Lacsha copper-molybdenum project in Peru.
• Minsur can earn an initial 75% interest in Lacsha by completing 60,000 metres of drilling over a six-year period and paying Latin Metals approximately $2.5 million in cash, with pre-negotiated pricing already in place that would allow Minsur to step up to full 100% ownership if it chooses to exercise that option later.
• When every stage of the deal is completed, the total cash flowing to Latin Metals could reach a little over $42 million, on top of what Minsur spends on the drilling itself.
• Separately from the Lacsha claim, Latin Metals' partnerships with Daura Gold at Cerro Bayo and La Flora and with Moxico Resources at Zaha are independently confirmed and both remain active and fully funded by those partners.
• Nearest-term catalysts include the Daura Gold's Phase II drill programme at Cerro Bayo and the first-ever drill test of the high-grade La Flora vein system, both scheduled for the third quarter of 2026 with assays expected to follow in the fourth quarter.

Latin Metals Inc. (TSXV:LMS) is getting an agreement with Minsur, a private Peruvian mining company, covering the Lacsha copper-molybdenum porphyry project in Peru. The deal is the latest test of Latin Metals' prospect generator model at a time when copper majors and well-capitalised private miners are competing hard for district-scale porphyry ground, and it lands alongside continued partner-funded drilling at the company's Argentine silver-gold assets, Cerro Bayo and La Flora.

Project Overview and Financial Metrics

Under the terms disclosed by CEO Keith Henderson, Minsur can earn 75% of Lacsha by drilling 60,000 metres over six years and paying Latin Metals approximately $2.5 million in cash, a work commitment Henderson estimated at roughly C$40 million in Minsur-funded investment. Once Minsur holds 75%, it has a time-limited window to acquire the remaining 25% for roughly C$28 million. Latin Metals would retain a 2% net smelter return (NSR) royalty, with Minsur holding a separate three-year option to buy 1% of that royalty for a further US$20 million.

"If all of that happens, you're looking at a little over $42 million in cash coming into the company, not to mention whatever they spend on the drilling," Henderson said.

With Lacsha added, Latin Metals now has approximately $120 million under contract across its active partner deals, against a flat corporate budget of $3 million per year. Lacsha is a copper-molybdenum porphyry target that Latin Metals staked and advanced internally, using proprietary data sets to identify the area before any drilling took place.

Consistent with the prospect generator model, Latin Metals does not intend to operate the project once drilling begins. Henderson said the company prefers to redirect its technical team toward generating new targets rather than managing partner-funded programmes, though it maintains regular technical dialogue with existing partners.

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Competitive Positioning

Henderson framed Latin Metals' negotiating approach as a point of differentiation from peers that structure partner deals around fixed annual spending commitments.

"We work on meters and not dollars, because we don't want companies to waste money doing things we don't care about," Henderson said.

The company also described a deliberate positioning between major mining companies and smaller, less-financed juniors when selecting partners. Henderson characterised Minsur, Moxico Resources (Zaha) and Daura Gold (Cerro Bayo, La Flora) as well-financed counterparties, and said he has not seen signs of partner financing stress despite gold and silver prices pulling back from recent highs.

Interview with Keith Henderson, President & CEO of Latin Metals

Catalysts

Phase II drilling at Cerro Bayo is scheduled for the third quarter of 2026, with Daura Gold also planning the first drill test of the high-grade La Flora vein system in the same window wherein a target that has returned surface samples of up to 82 g/t gold and 1,239 g/t silver historically, and up to 63.88 g/t gold and 175.34 g/t silver in recent sampling. Combined, Latin Metals expects around 18,000 metres of partner-funded drilling across its portfolio before the end of 2026.

Henderson also said he expects to option most or all of Latin Metals' remaining project pipeline including Organullo, Crosby, and its Argentine sediment-hosted copper package during 2026 which would push the company's cumulative under-contract investment figure toward an estimated $150-180 million.

Risks

The bulk of Lacsha's committed investment is staged over a six-year term, and Minsur's option to move to 75% - let alone the subsequent step-ups to 100% ownership and the royalty buyout - depends on drill results supporting continued spending. Standard exploration risks apply: results to date at Lacsha are geochemical and geophysical rather than drill-confirmed, and true widths at Cerro Bayo remain unknown given the early stage of drilling there.

Latin Metals is also carrying near-term reliance on warrant exercises, with Henderson noting the company expects around $1.8 million (CAD) from warrants priced at 15 cents, against a share price around 25 cents at the time of the interview - a gap that would need to hold for the company to avoid seeking additional financing in 2026 and 2027.

The Investment Thesis for Latin Metals

• Minsur's Lacsha option adds a third major partner-funded project to Latin Metals' portfolio alongside Moxico Resources (Zaha) and Daura Gold (Cerro Bayo, La Flora), bringing total under-contract investment to roughly $120 million against a $3 million annual corporate budget.
• The deal structure - 60,000 metres of drilling and staged cash payments over six years, with pre-negotiated step-up pricing to 100% ownership - limits Latin Metals' exploration risk while preserving royalty upside.
• Phase II drilling at Cerro Bayo and the first drill test of La Flora, both expected in Q3 2026, are the nearest-term re-rating catalysts, with assays anticipated in Q4.
• Latin Metals aims to option most of its remaining pipeline (Organullo, Crosby, sediment-hosted copper package) during 2026, which would materially expand the company's under-contract investment figure.
• Monitoring ofwhether the ~$1.8 million in expected September 2026 warrant proceeds materialises, as this underpins management's stated no-further-financing outlook for 2026-2027.
• Lacsha's adjacency to Minsur's Newmont joint venture ground is a structural positive for the project's geological thesis but also means Latin Metals' upside there is contingent on a partner-controlled drilling sequence it will not operate.

Macro Thematic Analysis

Latin Metals' three active option deals with Minsur, Moxico Resources, and Daura Gold illustrate a broader dynamic playing out across the junior resource sector in 2026: well-capitalised private and mid-tier miners are increasingly willing to fund exploration on prospect generators' ground rather than compete for outright acquisitions, particularly in jurisdictions like Peru and Argentina where infrastructure and permitting reforms have improved investor sentiment. For prospect generators, this shifts the investment case away from binary discovery risk and toward a portfolio of optionality, where shareholder dilution is minimised and exploration capital comes disproportionately from partners rather than equity raises.

Henderson's framing of the model captures this discipline directly:

"We spend money like a royalty company. It's flat, it's $3 million every year, and we don't have any other costs."

That contrast of a fixed, modest corporate budget set against potentially over $100 million in partner-funded work commitments is the core mechanism prospect generator investors are underwriting. It also means the model's success is heavily dependent on partner quality and market conditions holding; a slowdown in mid-tier miner risk appetite, or a reversal in precious and base metals pricing, would directly affect Latin Metals' ability to keep converting its pipeline into funded deals at the pace management is currently targeting.

TL;DR

Latin Metals has optioned its Lacsha copper-molybdenum project in Peru to Minsur, a private Peruvian miner already in a joint venture with Newmont on adjacent ground. Minsur can earn 75% by drilling 60,000 metres over six years and paying roughly $2.5 million cash, with pre-negotiated pricing to move to 100% ownership - a deal CEO Keith Henderson estimates could bring in a little over $42 million US total. The company now has roughly $120 million under contract across its Lacsha, Cerro Bayo, La Flora and Zaha partnerships, against a flat $3 million annual budget. Q3 2026 drilling at Cerro Bayo and the first test of La Flora are the next catalysts.

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