Latin Resources (ASX:LRS) has entered into a pre-AIM listing funding arrangement for US$300,000 with New York-based investment firm Magna Equities 11.
The Funding comprises a US$300,000 Unsecured Convertible Promissory Note and Subscription Deed with a five month maturity and an interest rate of 12% per annum.
This will fund the company’s AIM listing and for working capital purposes.
LRS can elect to repay the Convertible Loan at any time during the term in cash at a 20% premium.
It can be also be converted into AIM Depositary Interests at any time during the term, subject to certain conditions, at a 20% discount to the price at which the Depositary Interests are admitted to trading.
In March, Latin signed a memorandum of understanding with Minera Antares Perú S.A.C. (Antares), the Peruvian subsidiary of First Quantum Minerals (TSE:FM) to collaborate together exclusively for 12 months to discover mineral deposits worthy of further exploration and development.
This will be carried out over the 65,730 hectares of mining concessions in Southern Peru that are held by the company’s wholly-owned subsidiary Peruvian Latin Resources.
The company also raised $285,000 through a placement priced at $0.01 to sophisticated and professional investors.
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