In its aim to fast-track exploration activity and development approvals at its flagship 100% owned Salinas Lithium Project in Brazil, Latin Resources Ltd (ASX:LRS) has raised $37.1 million at A$0.105 per share in a well-received placement full of battery metals heavy hitters as well as Brazil’s largest investment bank.
Following the raise, Latin will have a cash balance of around $57 million (before costs) and is fully funded for an aggressive resource definition program to increase the size and indicated JORC mineral resource at the Colina Deposit.
Money raised will also be used for further exploration work on the recently acquired tenure of 29,940 hectares north of the Colina Deposit and general working capital.
Overall money will go to:
- funding the Definitive Feasibility Study (DFS);
- fast-tracking environmental studies;
- securing development license approvals; and
- further exploration work on recently acquired tenure to the north of the Colina Deposit.
The well supported placement not only brings in some heavy hitting new funds to the register, including specialist North American battery metals funds, but also a well-regarded domestic institution and two major Brazilian funds.
The Brazilian funds include BTG (LSE:BTG) Pactual, Brazil’s largest investment bank and JPG one of Brazil’s largest asset and wealth management institutions.
Latin’s largest shareholder, Integra, has also added to its holding.
“We are delighted to announce the completion of the placement which has enabled us to introduce a number of high quality, North American, Brazilian and domestic institutions to the company’s register,” Latin managing director Chris Gale said.
“The placement provides significant validation of Latin’s portfolio of assets and the company’s ongoing resource expansion drill program, feasibility studies and development approvals for Salinas.
“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Latin’s Salinas Project in this emerging lithium district in Brazil.
“We look forward to releasing to the market further drilling results from Colina and the updated JORC mineral resource expected in June 2023.”
Resource definition drilling progressing well
Latin has undertaken a 65,000 metre resource definition diamond drilling campaign and has so far completed a total of 32,000 metres in 109 diamond drill holes at Colina.
This aggressive exploration program includes the recent addition of four diamond drilling rigs, taking the total rigs onsite to eight, operating on a double shift basis.
Read: Latin Resources races towards June lithium resource upgrade with next round of substantial results
Latin is on track to close off its drilling database in mid-May. This will enable the company to start the mineral resource upgrade estimation process in June 2023.
Notably, Latin is well-placed for fast-track approvals with the recent signing of a non-binding memorandum of understanding (MoU) with the State of Minas Gerais, a partnership that will reinforce the existing cooperation between Latin and the State of Minas Gerais.
This partnership gives Latin the opportunity to streamline the approvals pathway to take the Colina Deposit through feasibility studies and into production.
Latin is continuing with metallurgical test work, with the final selection of a representative bulk sample for the next round of metallurgical test work in the final stages and drilling of large diameter PQ size drill core set to start in late May.
Proposed test work will then follow on from the existing heavy liquid separation (HLS) test work which returned exceptional recoveries of over 80.5% of lithium recovered in a concentrate grading up to 6.6% Li2O.
All test work will be used to provide information for the upcoming DFS.