Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has successfully drawn down A$5 million from its A$10 million loan facility with Pilbara Minerals Ltd (ASX:PLS).
This facility was established as part of the binding Scheme Implementation Agreement (SIA) announced on August 15, whereby Pilbara Minerals will acquire 100% of Latin Resources’ issued securities through a Scheme of Arrangement.
The acquisition allows Latin Resources to advance its projects with enhanced financial backing.
Supporting operations
The initial drawdown supports Latin Resources’ operations as it advances the Scheme of Arrangement process.
Subject to various conditions outlined in the SIA, the Scheme of Arrangement is progressing according to schedule.
The Scheme Booklet and associated documents have been lodged with the Australian Securities and Investments Commission (ASIC) in preparation for distribution to Latin Resources shareholders.
Vote to take place
Latin Resources security holders will convene in January 2025 to vote on the scheme. Pending shareholder and Court approval, the implementation is targeted for early February next year.
The company has confirmed it will provide additional updates on the progress of the scheme later this month.