Latin Resources Ltd (ASX:LRS, SETSQX:LRS, OTCQX:LNRDY) has raised $385,000 through the placement of 77,000,000 shares at $0.005 to sophisticated and professional investors.
The company's share price has been on a solid uptrend since mid-February 2016, tripling since that timeline to $0.009 as investors twig to the exploration upside of its South American projects.
The funds raised from the placement will be used for exploration of the company's portfolio of projects in Peru and general working capital.
This follows recent news that the company has received a research and development rebate of $950,000.
Latin Resources' Peru portfolio is split into the Ilo projects, which are located in south Peru, and the Guadalupito project on the central-north coast.
Ilo projects
The company is actively progressing its iron oxide-copper-gold and copper porphyry projects in the Ilo district.
Its three key Ilo projects are Ilo Este, Southern Concession Block and Ilo Norte.
Ilo Este
Ilo Este is a porphyry copper project, which is operated by its joint venture partner Zahena.
Zahena has the right to earn 70% equity in the project for US$1.0 million cash plus minimum exploration work commitments of 11,000 metres of diamonds drilling, valued at circa US$3.0 million.
Zahena has completed a total of 8 diamond drill holes for 4700 metres.
Assay results from the first hole completed by Zahena featured 0-366 metres at 0.11% copper and 0.11 g/t gold.
Drilling to date has highlighted the size of the overall mineralised porphyry, which now extends
over 1.5 kilometres along the strike.
Further results from Zahena’s drilling are expected to be reported in Q2, 2016.
Southern Concession Block
The Southern Concession Block hosts a covered porphyry copper target, Pachamanca/MT-03, based on a 5 kilometre diameter circular feature interpreted from aeromagnetic data.
The target was a result of collaborative exploration activities between the company and a subsidiary of First Quantum Minerals Ltd (TSE:FM), who operate 7 mines globally.
The entire target area, and any potentially mineralised system, is completely obscured by transported cover making any past exploration of the area likely ineffective.
The collaborative agreement began in March, 2015 with an initial 12 month period to identify target properties.
If First Quantum identified a target they deemed worthy of further exploration, a 6 month extension would be granted for further exploration and to negotiate additional agreements.
First Quantum consider Pachamanca/MT-03 worthy of further exploration and have earned an additional 6 months.
Three 4 kilometre long induced polarisation (IP) geophysical survey lines are planned to be executed in Q2, 2016.
Ilo Norte
Ilo Norte is 100% owned by Latin Resources and over US$3 million of exploration to date suggests there is good potential for a moderate tonnage high grade copper-gold deposit.
Proximity to infrastructure and favourable topography, would likely be an attractive mine development.
Discussions continue with prospective exploration partners for Ilo Norte to unravel the complex structural setting required to deliver exploration success.
Guadalupito
Guadalupito is an andalusite and heavy mineral sands project that the company is seeking to develop through partnerships.
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.
Copper market
Chile accounts for over 30% of global copper production, predominantly from porphyry deposits.
The copper market has favourable supply-demand characteristics with a recovery in prices expected over the coming 5 years.
Recently, The International Copper Study Group forecast demand for copper to slightly outweigh supply in 2016.
Copper grades have been falling at existing mines and copper demand is expected to increase by 7.6 million tonnes (27%) over the next 10 years.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.