Latin Resources (ASX: LRS) has generated A$950,709 in new funds for the company via a placement at a 25% premium to the company’s major shareholder, Hong Kong’s Junefield Group.
The placement of 6,338,060 shares at $0.15 each will lift Junefield’s shareholding in Latin from 19.8% to 22.5%.
The placement to Junefield at a 25% premium to the last traded share price of $0.12 is a sign of confidence in Latin’s projects in Peru, South America.
The founder of Junefield has built a $2 billion fund to invest in resources and in Peru. Junefield has been drilling itself at a property around Latin's Ilo project and Mariela and is known to be bullish on the potential of Latin Resources.
The Junefield Group will also have the option of appointing an additional director to Latin’s Board.
The funds raised from the placement will be used to progress Latin’s projects in Peru and for working capital purposes.
Ilo Norte drilling
Latin is set to drill at its Ilo Norte project in Southern Peru with the confirmation of a major copper-gold target.
All permits and authorisations for drilling have now been received and the company is planning to begin drilling at the project in May.
Latin has reported elevated levels of copper and gold in soil samples located in the vicinity of a recently discovered induced polarisation (IP) geophysical anomaly.
Importantly, the new surface soil and chip‐channel sampling enhance the prospectivity of the copper‐gold drill target at the project.
Chip‐channel samples returned 80 metres at 0.19% copper and 0.05 grams per tonne (g/t) gold, which remains open to the southwest, 1 kilometre south of the main soil anomaly.
These results highlight the potential for much higher grades down-dip.
Analysis
The raising of cash at a 25% premium is a solid effort in today’s market and also demonstrates the confidence Junefield has in the potential of Latin and its projects.
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Latin Resources’ shareholder Junefield Group ups stake at 25% premium
Published: 15:55 23 Apr 2013 AEST