Latin Resources Receives Firm Commitments for $35 Million Placement

23 October 2023 10:18

Latin Resources (ASX:LRS) has received firm commitments for a $35 million Placement through fully paid ordinary shares to new and existing investors, with the funds anticipated to inject significant capital to expand and accelerate the exploration program at the Salinas Lithium Project in Brazil.

Placement Details

The Placement involves the issuance of 140 million new shares at an offering price of $0.25 per share, with an estimated total gross amount of $35 million. This offering price presents an attractive discount, with a 5.7% reduction from the last closing price of $0.265 on October 19, 2023.

Additionally, it offers an 11.7% discount compared to the 5-day VWAP and an 11.1% discount compared to the 10-day VWAP, both of which were at $0.281.

The successful capital raise strategically positions Latin for its financial future, with an expected post-placement cash balance of approximately $65 million, solidifying the Company’s financial strength and outlook.

Latin Resources’ Salinas Lithium Project

The $35 million Placement will be used to accelerate and expand the Company’s flagship Salinas Lithium Project located in Brazil.

This month, Latin revealed encouraging assay results from the Colina Deposit, Colina Infill, and Fog’s Block targets at its wholly-owned Salinas Project, aiming to enhance the Company’s Global JORC Resource and position the Salinas district as a premier lithium jurisdiction.

The Company’s current defined Mineral Resource Estimate (MRE) at its Colina Lithium Deposit is 45.2Mt @ 1.32% Li2O, reported above a cut-off of 0.5% Li2O.

Latin also announced its Preliminary Economic Assessment (PEA) for the Colina Prospect in September, outlining a low-capital, two-phased operation aimed at producing a high-quality SC5.5 product and a 3% Li2O spodumene tails concentrate.

The Placement provides the Company with a significant capital injection to expand and accelerate its exploration program at the Salinas Lithium Project in Brazil, with an expanded drill program planned for 2024, in addition to funding geotech and hydrogeology works to support the Definitive Feasibility Study expected to be announced in the first half of 2024.

Latin Resources anticipates the global JORC MRE to expand significantly by implementing the additional drilling program.

Latin Resources Comments About the Successful Raise

Latin’s Managing Director Chris Gale said that the Company is delighted to announce the completion of the Placement providing significant headroom to accelerate its drilling efforts into 2024.

“The new funds will enable the Company to continue to grow its Salinas resource to become a Tier one lithium global project,” he said.

“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 as we continue to meet our objectives.”

“We look forward to releasing to the market the DFS in H1 2024, with the Final Investment Decision to be announced in Q4 2024.”

LRS’s Australian Stock Exchange-listed share price is currently selling at $0.255 (10:15 am UTC+ 8 hours).

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