Latin Resources Ltd (ASX:LRS) (FRA:XL5) directors have demonstrated their support for the company’s recent move into the gold sector by participating in a share purchase plan (SPP).
Non-executive chairman David Vilensky, managing director Chris Gale and non-executive director Brent Jones have taken up their part entitlement in the SPP which closed heavily oversubscribed to the tune of 83% above the target.
Buoyed by strong support
The company is buoyed by the very strong support to the SPP which was set up to raise $627,000, however, applications received totalled more than $1.15 million.
On July 17, Vilensky acquired 545,092 shares in an indirect interest with that interest now holding 1,681,579 shares.
Also, on that date, Jones 545,092 acquired ordinary shares in an indirect interest with 2,361,528 shares now held in that interest and a further 361,459 in another indirect interest.
Gale’s participation amounted to 545,093 shares in an indirect interest.
There are now 1,124,622 now held in that interest with 635,656 held in another indirect interest.
Scale-back completed
After receiving applications for a total of 230.16 million shares, the company has completed a scale-back of applications equally on a pro-rata basis.
The SPP response is a strong endorsement of the company’s recent move into the gold sector by way of an earn-in agreement covering the highly prospective Yarara Gold Project in the prolific Lachlan Fold Belt of NSW.
Last month the company signed a binding farm-in terms sheet with Mining and Energy Group Pty Ltd (MEG) to earn up to a 75% interest in the project near Albury in southern NSW.
“Exciting gold project”
At the time, Gale said: “The Yarara project presents an excellent opportunity to secure a significant and highly prospective gold project which has not benefited from modern exploration techniques in an emerging area of the Lachlan Fold Belt which has an established reputation as a world-class mineral province.
“Now we have our South American projects fully funded in Peru and Argentina, we can move our focus onto a very exciting gold project in the Lachlan Fold Belt, an area that shows incredible promise to enable LRS to become an exciting Australian junior explorer.”
SPP proceeds will be allocated for exploration, project development, working and other capital requirements.