- Latin Resources (ASX:LRS) receives firm commitments to raise $35 million through a share placement
- The funds will be directed towards driving exploration at the Salinas lithium project in Brazil
- Funds will go toward an expanded drilling program in 2024
- The placement offer price represents a 5.7 per cent discount to the last closing price on October 19, 2023
- LRS is down 3.77 per cent, trading at 25.5 cents at 1:35 pm AEDT
Latin Resources (ASX:LRS) has secured firm commitments to raise $35 million through a share placement to institutional, sophisticated, and professional investors.
This fresh cash injection will enable Latin Resources to bolster and expedite its exploration efforts at the company’s Salinas lithium project in Brazil.
Upcoming exploration plans
The company plans to execute an expanded drill program in 2024, alongside financing geotech and hydrogeology works essential for the definitive feasibility study aimed for release in H1 2024.
“We are delighted to announce the completion of the placement, which provides the company with significant headroom to accelerate its drilling efforts into 2024, with 10 drill rigs mobilised currently,” LRS Managing Director Chris Gale said.
The capital raised from this placement will be allocated to fast-track the development of Salinas.
Placement details
Under this placement, Latin will issue approximately 140 million new shares at an issue price of 25 cents per new share.
It’s worth noting that this offer price represents a 5.7 per cent discount to the last closing price on October 19, 2023.
Canaccord Genuity (Australia) served as Lead Manager and Bookrunner to the placement, with PAC Partners Pty Ltd acting as Co-Manager.
Latin Resources shares were down 3.77 per cent, trading at 25.5 cents at 1:35 pm AEDT.