Latitude 66 (ASX:LAT) has completed the sale of its non-core Piastri Project in Western Australia to Capricorn Metals (ASX:CMM) for $1.5 million in Capricorn shares.
Capricorn issued Latitude 102,172 fully paid ordinary shares, with the number calculated using its 20-day volume-weighted average price before completion.
At Capricorn’s closing price of $17.50 on 21 August, the shares were worth approximately $1.79 million — around $290,000 above the agreed consideration.
The market value of the shares will continue to fluctuate with Capricorn’s share price.
The transaction forms part of Latitude’s strategy to generate funding from assets outside its core portfolio without issuing additional Latitude 66 shares.
Managing Director Grant Coyle says the sale allows the company to direct more capital towards its priority projects.
“Completing the sale of the Piastri Project to Capricorn Metals is another excellent result in our strategy to unlock value from Latitude’s non-core assets,” Coyle says.
Combined with Latitude’s recently reported $3.4 million royalty portfolio sale to Vox Royalty (TSX:VOXR), the current value of the Capricorn shares gives Latitude approximately $5.19 million in non-dilutive liquidity.
“This significant funding increase allows us to maintain sharp operational focus on accelerating exploration and development studies at our core projects, the KSB [Kuusamo Schist Belt] Project in Finland and Laverton Gold Project in Western Australia,” Coyle says.
KSB hosts a mineral resource estimate of 650,000 ounces of gold and 5,840 tonnes of cobalt. The company’s Western Australian portfolio includes the Red Dog and Tin Dog targets at Laverton, which are located on granted mining leases.
Latitude 66 is an Australian mineral exploration and development company focused on gold and critical mineral projects in Finland and WA.
Write to France Pinzon at Mining.com.au
Images: Latitude 66
