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- Junior gold explorer Latitude (LCD) has entered into an option agreement to sell its Gecko North Project in WA to ASX-hopeful Origin Gold Mines
- Origin is seeking to list on the ASX in the second quarter of 2021
- The divestment will free up capital for Latitude to advance exploration on its flagship Western Australian and South Australian gold properties
- Valued at $210,000, the transaction includes $110,000 cash and $100,000 worth of Origin shares upon the IPO
- Origin will retain project access and meet the minimum expenditure requirement during a four-month option period, with the deal to finalise once Origin lists on the ASX
- Latitude shares are down 4.55 per cent, trading at 4.2 cents each
Junior gold explorer Latitude (LCD) has entered into an option agreement to sell its Gecko North Project in WA to ASX-hopeful Origin Gold Mines.
Origin is seeking to list on the ASX in the second quarter of 2021.
The strategic divestment will free up capital for Latitude to advance exploration activities at its flagship Western Australian and South Australian gold properties.
The $210,000 total transaction, which encompasses the option fee, includes $110,000 cash and $100,000 worth of Origin shares upon the IPO, in addition to a 1.5 per cent smelter return royalty over all minerals extracted at the property.
According to LCD, Origin will retain project access and meet the minimum expenditure requirement during a four-month option period.
The deal aligns with Latitude’s strategy to rationalise its project portfolio while at the same time maintaining exposure to project upside through a shareholding in Origin and a non-shared-resources royalty over the property.
The transaction will be completed following Origin’s listing on the ASX.
Latitude shares are down 4.55 per cent, training at 4.2 cents at 4:46 pm AEDT.
