Latin Resources (ASX:LRS) has raised A$3.1 million for the further development of its copper assets in Peru as drilling plans get underway.
The explorer confirmed the capital raising under an entitlement offer and shortfall at an issue price of $0.008 per share.
The funding follows an agreement signed with Peruvian joint venture partner Compania Minera Zahena last month which provided for $1 million of staged investments in Latin plus a $5 million payment in the event that a successful Definitive Feasibility Study is produced to exploit resources from the company’s Ilo Este copper project.
Latin announced earlier this week that it was set to begin drilling at Ilo Este with Zahena after the completion of camp construction and the mobilisation of two drill rigs at the site.
The work will include a minimum of 5,000 metres of diamond drilling within 6 months, 3,000 metres more within 12 months and a further 3,000 metres for a total of 11,000 metres within 18 months.
Latin recently completed three diamond drill holes for a total of 2,073.3 metres drilling over 1.1 kilometres of strike within one of two striking intrusive porphyry belts that make up Ilo Este’s overall 3-square-kilometre mineralised system.
Each hole hosted porphyry copper mineralisation, with results from the third hole, in particular, verifying the importance of the porphyry system as a large and significantly mineralised system.
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