- Latin Resources (LRS) will raise a $652,000 placement to fund exploration at its Yarara Gold Project, maintain its South American properties and for general working capital
- The Yarara Gold Project is one of Latin’s newer projects under a recently signed binding term sheet to earn up to a 75 per cent interest
- The mineral explorer will issue over 59.2 million shares at 1.1 cents to sophisticated and professional investors
- Pleasingly, the placement received strong support from investors which saw it be oversubscribed by $102,000
- Company shares have soared 45.5 per cent to trade for 1.6 cents
Latin Resources (LRS) will raise $652,000 through a placement to sophisticated and professional investors.
The company will issue 59,272,728 shares at an issue price of 1.1 cents which represents a four per cent premium to Latin’s 10-day volume-weighted average price (VWAP).
The placement shares come with a one-for-one free-attaching LRSOC listed option at an exercise price of 1.2 cents. This option will expire on December 31 2022.
Pleasingly, the placement was oversubscribed by $102,000.
The mineral explorer claimed the funds were predominantly raised from longstanding shareholders following significant interest.
Latin was also able to facilitate a sale of shares from its largest shareholder, Lind Asset Management LLC, to sophisticated investors.
Latin Resources will use the money for exploration work at its Yarara Gold Project in New South Wales, for project development and to maintain its South American mineral properties. The funds will also go toward working capital.
The Yarara Gold Project is one of Latin’s newer projects. It signed a binding farm-in terms sheet in June of this year with Mining and Energy Group to earn a major stake in the project. The agreement detailed that Latin could earn up to a 75 per cent interest in the project if it satisfies various conditions.
On the back of today’s news, company shares have soared 45.5 per cent to trade for 1.6 cents at 12:52 pm AEST.