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Latin Set to Accelerate Growth with $AUD37.1 Million Capital Raising

19 April 2023 12:21
ASX: LRS

Latin Resources are poised to accelerate resource growth at its flagship Salinas Project in Brazil having received firm commitments to raise $AUD37.1 million dollars through an institutional two-tranche placement priced at A$0.105 per share.

The success of the placement indicates Salina’s growing profile, with the raising bringing Brazil’s largest investment bank, BTG Pactual and, one of Brazil’s largest asset and wealth management institutions, JPG to Latin’s register.

Through the placement, Latin will have a cash balance of approximately $AUD57 million dollars and is now fully funded through a resource upgrade, DFS, environmental studies and development licence approval application at the Salinas Lithium Project.

Funds will be put towards an aggressive resource definition program aimed at expanding both the size and Indicated Mineral Resource of the Colina Deposit, with 65 thousand metre resource definition drilling campaign currently underway in the lead-up to a planned upgrade estimation of the deposits 13.2Mt @ 1.2% Li2O MRE in June.

The campaign most recently extended known mineralisation across a 1km by 1km area, with the rig pulling up intersections up to 14.00m @ 1.55% Li2O from 323.00m including 5.00m @ 1.99% Li2O from 323.00m.

Between the placement and a recent Memorandum of Understanding with the State of Minas Gerais, the Company is well positioned to significantly fast-track development approvals alongside acceleration of resource growth, with this partnership with Minas Gerais assisting to streamline approvals pathway for Latin to take the Colina Deposit through feasibility studies and into production.

The Company said alongside the expansion of Colina’s MRE, funds will also be put towards further exploration work at a recently acquired tenure just under 30 thousand hectares north of Colina.

“We are delighted to announce the completion of the Placement which has enabled us to introduce a number of high-quality, North American Brazilian and domestic institutions to the Company’s register,” Managing Director Chris Gale said.

“The Placement provides significant validation of Latin’s portfolio of assets and the Company’s ongoing resource expansion drill the program, feasibility studies and development approvals for Salinas.”

“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Latin’s Salinas Project in this emerging lithium district in Brazil. We look forward to releasing to the market further drilling results from Colina and the updated JORC Mineral Resource expected in June 2023.”

Latin expects the Settlement of New Shares under the first tranche next week.

LRS’s Australian Stock Exchange-listed share price has risen 4.54 per cent today, currently selling at 11.5c (10:23 am UTC+ 8 hours).

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