Latin Resources (ASX:LRS) has raised $500,000 through the placement of 62.5 million shortfall shares priced at $0.008 each to sophisticated and professional investors.
This includes 31.25 million free attaching options exercisable at $0.02 at any time up to 9th March 2017.
It previously raised $300,891.29 through its entitlement issue leaving the company to actively pursue investors to place the balance of $2.28 million remaining in the shortfall.
Proceeds from the placement will be used to pay the Junefield convertible note and to progress the company’s projects in South America.
Recent Activity
In July, the company’s memorandum of understanding with Minera Antares Perú S.A.C. (Antares), the Peruvian subsidiary of First Quantum Minerals (TSE:FM), resulted in the discovery of a new porphyry copper target in Southern Peru.
First Quantum is capitalised at C$7.5 billion and has seven operating mines globally.
The 5 kilometre circular feature was uncovered in aeromagnetic data with Andean and cross arc structures intersecting the area.
Its services division PLR Services also continues to grow with sales of at least US$223,600 in 2015 based on existing contracts.
This is up 118% on 2014 sales of US$102,600 and could grow further during the second half from proposals during the second half.
Latin also signed a definitive contract transferring 70% ownership of the Ilo Este Project to Compañia Minera Zahena SAC (Zahena).
Total consideration is US$1.0 million cash and minimum exploration work commitments including 11,000 metres of diamond drilling worth around US$3.0 million.
Zahena expects to start drilling in August.
In June, the company reached an a positive deal for the company in regards to Guadalupito that removed the need to make cash payments until completion of the Definitive Feasibility Study.
This paves the way for a potential joint venture partner to view the project on much more attractive terms.
Guadalupito hosts a JORC Inferred Resource of 1.3 billion tonnes at 5.7% heavy minerals as well as a conceptual exploration target of between 3.9 billion and 5.1 billion tonnes grading 3.2% to 8.4% heavy minerals.
Analysis
The placement of $500,000 worth of shortfall shares is a strong result for Latin Resources in the current challenging markets.
The company is now seeking to place the remaining $2.28 million from the shortfall.
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