On completing the acquisition of 100% of the shares in Latin Resources Ltd, Pilbara Minerals Ltd has gained ownership of the flagship Salinas Project in Brazil, which has the potential to become one of the world’s leading hard rock lithium operations by production.
Located in the world-class mining jurisdiction of Minas Gerais, Brazil, Salinas, which has been renamed Colina by Pilbara Minerals (PLS), will now be subject to a review aimed at informing project design and development studies.
This will incorporate key learnings from PLS’s Pilgangoora Project in WA and other producers in Brazil and will build on the work completed by Latin’s in-country team to date.
Shares issued today
Acquisition of 100% of the shares in Latin Resources has been completed by way of a scheme of arrangement and 100% of the options in Latin Resources by way an option scheme of arrangement.
Accordingly, PLS has today issued 205,521,136 new PLS shares to Latin Resources security holders and the appointed sale agent (in respect of Ineligible Foreign Shareholders and Electing Scheme Participants), representing approximately 6.4% of PLS shares on issue.
World-class asset
Latin’s CEO and managing director Chris Gale said: "With over 15 years of dedication, hard work and shared success, we hand over a great company to Pilbara Minerals whom, I believe, will build on our success with our Salinas lithium project in Brazil.
"When we began Latin Resources, our vision was to explore and build something meaningful, something that added value to our shareholders and we accomplished that.
"Together with our dedicated and amazing staff we faced challenges, showed resilience, celebrated victories, adapted to change and built not just a great company, but a world-class lithium asset in Minas Gerais, Brazil.”
Significant milestone
PLS said completion of the acquisition of Latin Resources and its flagship Salinas Project, marked a significant milestone in the group’s history with the acquisition consistent with its strategy to grow and diversify revenues beyond Pilgangoora.
PLS’ managing director and CEO Dale Henderson said: “On behalf of the PLS Board of Directors and the leadership team, we would like to welcome Latin Resources team members and security holders joining PLS.
"We are excited by the opportunities ahead at our Colina Project in Brazil. The PLS team is looking forward to working with our new colleagues in Brazil to advance project studies and resume drilling activities, which will support the future development of the Colina Project.
"We also thank the State of Minas Gerais and the local Salinas community for their continued support for the Colina Project.
"One of the attractions of Latin Resources was the strong foundation of community support that has been established. We look forward to continuing this collaboration with the community and all key stakeholders in Brazil.
“The completion of this acquisition marks a significant milestone for PLS, providing us with our second 100%-owned, high-quality, hard rock lithium asset.
“This asset is expected to be low-cost and accretive for our shareholders, offering us the flexibility to sequence new supply and diversify into emerging growth markets for lithium, such as Europe and North America.”
Integration plan
PLS has worked closely with the Latin Resources team to develop an integration plan to assist with seamless integration.
In parallel with Colina Project development studies, PLS plans to undertake exploration with the objective of expanding the resource base, testing new prospects and infilling the existing mineral resource.
Following completion of development studies, exploration program and permitting for the Colina Project, PLS will consider a final investment decision taking into account prevailing lithium market conditions and customer requirements at the time, consistent with previous PLS expansion projects.
Latin Resources intends to apply to be removed from the official list of the ASX with effect from close of trading on February 5, 2025.
Heart and soul of company
“As last day of CEO and managing director of Latin, I want to express my deepest thanks, to our employees and directors of Latin Resources and Belo Lithium — you are the heart and soul of this company. Your dedication, passion, and resilience have been extraordinary, and I am forever grateful to have worked alongside each of you,” Gale said.
"To our shareholders, stakeholders and partners — thank you for believing in us. Your trust and support has been invaluable, and we are honoured to have served you over the years.
"And to everyone who has been part of this journey, this brings a new beginning as Latin Resources Salinas Project is developed by one of the world’s best lithium companies, Pilbara Minerals.
"I wish Dale Henderson and his team all the best with Latin Resources and the continued success built over the years by our wonderful team."