Following due diligence and receipt of all necessary regulatory approvals, the consideration for the deal will be A$6.5 million in shares and US$250k in cash.
The current market cap of Latin is circa A$12 million, so the divestment of the copper assets adds significant tangible value to the company's portfolio.
Following the deal, Latin will be the largest shareholder of Westminster with a 45% stake.
Latin to focus on lithium and cobalt
The sale of the assets will enable Latin to focus its resources on the development of its Lithium projects in Argentina
Latin Resources gets a dual-benefit from the deal.
The first is extracting value from these non-core assets so the focus can remain on its lithium and cobalt strategy, while secondly, Latin maintains exposure to upside in the assets through Westminster.
Latin will also save $140,000 a year in concession costs.