Latin Resources Ltd (ASX:LRS, OTC:LRSRF) has boosted its cornerstone holding in Solis Minerals Ltd (ASX:SLM, TSX-V:SLMN, OTCQB:SLMFF) from 4.66% to 17.79% by participating in Solis’s oversubscribed $8 million capital raise.
The company will invest $3 million into Solis at $0.55 per share and will continue to remain Solis’s largest shareholder.
Latin’s participation in the placement will be funded from its existing cash reserves of $50.2 million, with the ability to invest in Solis representing a significant value proposition to gain further exposure to the Brazilian lithium market.
Solis intends to apply funds raised from the placement towards exploration works and associated acquisition fees for its recently acquired Jaguar Lithium Project in Northeast Brazil.
Read: Solis Minerals soars on deal to acquire high-grade hard rock lithium project in Brazil
The Jaguar Lithium Project contains significant prospective pegmatite targets with 4.95% Li2O (lithium oxide) returned from rock chip samples and a geological setting consistent with other hard rock lithium provinces in Brazil, notably Latin’s Salinas project.
Solis expects to start drilling on Jaguar in June 2023, with Latin intending to support Solis by making available its exploration guidance and country experience.
Latin is confident that Solis will undertake a successful exploration program and deliver on the full potential of Jaguar.
“Latin 2.0”
Latin managing director Chris Gale said: “Latin has a very focused approach in developing its 100% owned Salinas Lithium Project.
“However, we are delighted to provide support to Solis by way of this cornerstone investment to fund exploration at its recently acquired Jaguar Lithium Project in Brazil. Furthermore, we are pleased to be in a position to provide exploration guidance and country experience to support the team at Solis.
“The opportunity for hard rock lithium in Brazil is significant, and the early mapping of the extensive pegmatite body at Jaguar shows that Bahia State has potential to become a new lithium province.
“We have great confidence that the Solis team will progress this project to potentially become a Latin 2.0.
“This investment also presents an exciting opportunity for Latin to continue to support the growth of the lithium industry in Brazil, which we believe is on track to be one of the top lithium producing countries in the coming years.”