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Latin Resources enhances its exposure to copper amidst strong market fundamentals

Last updated: 23:30 13 May 2021 BST, First published: 23:21 13 May 2021 BST

Latin Resources Ltd - Latin Resources enhances its exposure to copper amidst strong market fundamentals
Westminster is raising C$2.75 million via a private placement.

Latin Resources Ltd (ASX:LRS) (FRA:XL5) is enhancing its exposure to copper amidst strong market fundamentals by acquiring 2.7 million shares worth C$540,000 in a private placement by Westminster Resources Ltd (CVE:WMR) (OTCMKTS:WMRSF).

The company will hold a 24% interest in Westminster upon the close of the private placement to maintain its position as Westminster's largest shareholder.

Latin is enhancing its stake in Westminster, which has three large-scale copper exploration projects in Chile and Peru, as the copper price hit a record high of US$10,747.50 on Monday, topping the previous record set in 2011.

Acquisition of Mostazal Copper Project

The primary use of funds from the private placement will be to further develop Westminster’s copper project portfolio in Latin America including the newly acquired Mostazal Copper Project and its copper projects in Peru acquired from Latin Resources.

Latin executive director Chris Gale said: “We congratulate Westminster team on the successful placement to fund the development of the exciting Mostazal Copper Project in one of the world’s premier copper districts.

“Latin Resources is strongly supportive of the well-structured and well-timed acquisition Westminster has made of the Mostazal Copper Project in Chile, with the outlook for copper being so robust.

“We look forward to seeing the WMR team advance the project where they can now commence exploration, targeting a large-scale copper porphyry system, underlying the already delineated higher grade copper mineralisation at surface.”

The Mostazal Copper Project is in the Atacama Desert of Chile consisting of eight exploitation licences covering about 16 square kilometres within the main porphyry copper belt of Chile, along the Domeyko Fault System.

Notably, the Domeyko Fault is among the most productive copper regions in the world, hosting a significant number of copper porphyry deposits.

Deep-rooted magnetic anomalies

Westminster has interpreted a porphyry copper deposit beneath the existing mineralisation and geochemical/geophysical anomalies.

In particular, Westminster is in the process of reviewing data from a 2012-2013 exploration program conducted by a prior operator at Mostazal.

This program included geophysical and geochemical surveys conducted with the primary objective of delineating the extent and margins of a 4-kilometre by 2.5- kilometre north-south trending belt of outcropping copper mineralisation and associated rock geochemical anomalies.

The preliminary interpretation of the geophysical data indicates that much of the known mineralisation at surface is closely correlated to four deep-rooted magnetic anomalies.

Mostazal Project Plans showing a strong untested soil sampling copper anomaly (left), with coincident magnetic anomaly.

Anomaly 'A' occurs on the eastern margin in the northern part of the grid and is coincident with mineralisation and artisanal workings.

Two further anomalies, 'B' and 'C', are part of a large circular feature located in the central part of the grid and both are closely associated with known mineralisation.

The fourth deep magnetic anomaly, 'D', is located in the southern part of the grid and is open to the south.

These four anomalous areas are considered key target areas for additional exploration at Mostazal, targeting both additional strata-bound mantos-style mineralisation as well as the modelled porphyry at depth.

“Significant size at depth”

Westminster president and CEO Jason Cubitt said: “Mineralisation at surface bears all the hallmarks of an extension to a buried porphyry copper system, including tell-tale alteration halo, and the suite of copper sulphides and associated pathfinder elements you’d expect to see.

“It’s highly encouraging to see the geophysical modeling of structures of significant size at depth lying beneath known copper mineralization at surface.”

Non-brokered private placement

Westminster has arranged for a non-brokered private placement of 13,778,750 units of securities at C$0.20 per unit for aggregate gross proceeds of C$2,755,750.

Each unit will be comprised of one common share in the capital of Westminster and one-half common share purchase warrant.

Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of C$0.30 at any time up to 24- months following issuance.

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