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Latin Resources Ltd raises $35 million to accelerate drilling program at Salinas

Latin wants to secure two more platforms, to bring the total fleet to four platforms in Brazil. This will allow the company to quickly scale up the project by ramping up the drilling campaign with a focus on drilling at least 25,000 meters at the Bananal Valley lithium discovery. The objective is a first estimate of the JORC mineral resources.

Latin Resources Ltd (ASX:LRS) has raised $35m and is now well funded to accelerate its drilling program in the Bananal Valley at the Salinas Lithium project in Brazil.

The company views the raise, which was anchored by a $15 million foundational investment by Electrification and Decarbonization AIE LP Fund (E&D Fund), a wholly owned subsidiary of Toronto-based Waratah Capital Advisers, as transformational.

Waratah invests in stocks of critical battery materials companies and in decarbonization-related investment opportunities and is the general sponsor and partner of Lithium Royalty Corp, a leading North American royalty company focused on the assets of lithium, which holds royalties on projects operated by Sigma Lithium, Zijin Mining, Core Lithium, Allkem and Sayona Mining.

Waratah’s investment is a strong vote of confidence in the Salinas lithium project and the potential for it to become a significant lithium operation.

The placement was very successful, attracting interest from institutional and sophisticated investors, including several institutional investors in Australia, North America and Asia, who will receive new common shares at an issue price of $0.16. to raise the $35 million.

Funds to accelerate Salinas

Funds from the placement will be used for multiple purposes, all designed to accelerate Latin’s lithium business in Brazil.

The funds will be used for:

  • An aggressive resource definition program for the Bananal Valley prospect at the Salinas Lithium project in Brazil;
  • Exploration drilling on the Monte Alto and Salinas South lithium prospects in Brazil;
  • A pre-feasibility study, direct-shipment ore study and metallurgical testwork for the Cloud Nine Halloysite-Kaolin deposit in Western Australia, as well as regional exploration in the wider Noombenberry project area;
  • Initial exploration drilling at the MT-03 copper project in Peru; and
  • Working capital.

Latin wants to secure two more platforms, to bring the total fleet to four platforms in Brazil. This will allow the company to quickly scale up the project by ramping up the drilling campaign with a focus on drilling at least 25,000 meters at the Bananal Valley lithium discovery.

The objective is a first estimate of the JORC mineral resources.

Additionally, LRS is set to complete 5,000 meters of drilling on each of the Monte Alto and Salina South prospects.

He also did not lose sight of his WA project. The money will go towards the rapid advancement of the Cloud Nine Halloysite-Kaolin deposit, with key feasibility studies underway aimed at delivering an upgrade to the JORC mineral resource and, in parallel, carrying out a study direct shipping ore (DSO) fast start.

Significant potential

Waratah President and CEO Ernie Ortiz is pleased to have made such a substantial contribution to the increase.

“We are very pleased to have the opportunity to invest in Latin Resources. The Salinas lithium project shows the potential to become a major lithium operation. We are excited about our partnership with Latin to advance its Salinas Lithium project,” said Ortiz.

Latin Resources Managing Director Chris Gale said: “Our results at Salinas were exceptional, revealing that we have very high grade lithium spodumene mineralization. We consider winning the support of a technically-focused group like Waratah’s E&D fund, which knows the lithium industry very well, to be a great endorsement for what we are doing and where we are heading with our Salinas project. Lithium. .

“What is really exciting is the roadmap ahead for LRS shareholders. We are relatively early in the discovery phase of our Salinas Lithium project, and we have a lot of work ahead of us, however, the level of attention we’re getting from industry players suggests we’re not the only ones who think Latin has a chance to develop a high-value lithium project in Brazil.

Investment Details

The placement was made at $0.16 per share, which represents a 13.5% discount to Latin’s last closing price before the transaction and an 8.3% premium to the weighted average price in based on the company’s 10-day volume.

Both new investment shares will have an unlisted option, with an exercise price of $0.22 and an expiration of five years.