Australian mineral exploration company Latin Resources (ASX:LRS) has received firm commitments to raise $37.1 million through a placement to accelerate exploration and development at the Salinas Lithium Project in Brazil.
The company reports the commitments for the 2-tranche placement of new fully paid ordinary shares was received from institutional, sophisticated, and professional investors. Latin says it is pleased to welcome several new funds to the register, including specialist North American battery funds, a well-regarded domestic institution, and 2 major Brazilian funds.
Latin’s largest shareholder, Argentinian company Integra Lithium, also participated in the placement, while Brazil’s largest investment bank BTG Pactual (BVMF:BPAC11), and Brazil’s largest asset and wealth management institutions, JPG also have taken a shareholding in Latin.
Canaccord Genuity (Australia) acted as lead manager and bookrunner to the placement, while PAC Partners and Bell Potter Securities acted as co-managers to the placement.
The company reports the placement provides the company with a ‘significant’ capital injection to expand and accelerate its exploration program at Salinas, while also funding the Definitive Feasibility Study (DFS), fast-tracking environmental studies, securing development licence approvals, and further exploration work on the recently acquired to the north of the Colina deposit.
“The placement provides significant validation of Latin’s portfolio of assets and the company’s ongoing resource expansion drill program, feasibility studies, and development approvals for Salinas”
Commenting on the placement, Latin Resources Managing Director, Chris Gale says: “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.
The placement provides significant validation of Latin’s portfolio of assets and the company’s ongoing resource expansion drill 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 the 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 reports it is now fully funded through to a resource upgrade, DFS, environmental studies, and development licence applications at Salinas. The company also says its 65,000m resource definition diamond drilling campaign is progressing well, with a total of 32,000m completed across 109 drillholes at the Colina deposit.
Along with drilling, the company is also fast-tracking approvals for Colinas under a memorandum of understanding (MOU) with The State of Minas Gerais, as well as undertaking metallurgical testwork which will inform the upcoming DFS.
Latin Resources is an Australian mineral exploration company with projects in South America and Australia. The company is currently focused on its flagship Salinas Lithium Project in the Minas Gerais district of Brazil where it has defined a maiden Mineral Resource Estimate (MRE) of 13.3 million tonnes @ 1.2% lithium oxide, and an exploration target of 22 million tonnes at Colinas.
Images: Latin Resources Ltd