Latin Resources (ASX:LRS, SETSQX:LRS, OTCQX:LNRDY) has launched a share purchase plan (SPP) priced at $0.038, a 10% discount to the market.
The funds will be used to commence drilling at the Ilo Este project, and continued testwork on the Guadalupito project.
The plan will raise up to a maximum of $2 million through the issue of 54,054,054 shares.
Latin has been very busy in Peru of late advancing projects with partners, while monetising others - highlighted by the sale of the Mariela project.
At the Ilo Este project in the heart of the country's prolific copper producing district, Latin has defined a copper-gold porphyry system over at least 3 square kilometres with up to 8.4% copper rock chips.
Investors will highly anticipate results from drilling.
Latin has also delivered positive testwork results on the Guadalupito Iron and Mineral Sands project.
The company recently overcome a key hurdle with the successful concentration of andalusite and magnetite using gravity techniques indicative of industrial scale processes on Los Conchales composite from the project.
In addition, the use of Batch Reflux Classifier (BRC) is significantly more efficient than the use of wet table methodology.
Notably, 80% of the andalusite recovered was more than 80% liberated, grading 60% Al2O3 and 0.2% Fe2O3 which is the target specification for the final high purity andalusite product in future bulk testing.
Andalusite was successfully recovered from the BRC concentrate using high intensity magnetic separation while magnetite was recovered using low intensity magnetic separation.
Ilo Norte Copper/Gold project
Drilling has also recently been conducted at the Ilo Norte Copper/Gold project where the company may be honing in on a significant orebody.
There are two rigs spinning at Ilo Norte, operated by a joint venture partner, and therefore at a zero cash cost to Latin.
Latin recently signed a binding term sheet with Peruvian company Compania Minera Zahena (CMZ) for a staged consideration of US$9 million to earn a 70% stake in the Ilo Norte project.
Further SPP details
Shareholders are entitled to purchase between $500 and $15,000 worth of additional shares without incurring brokerage or other transactional costs.
The price of $0.038 represents a 10% discount to the market price at close on the record date of 20 May 2014 and a 25% discount to the volume weighted average price of the company’s shares over the last 15 trading days prior to the announcement.
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