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Latin Resources bags funds from non-core asset sale to Westminster Resources

The agreement is subject to regulatory approvals and due diligence.

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Latin Resources has a focus on lithium and cobalt

Latin Resources Ltd (ASX:LRS) will pocket $6.8 million in cash and shares from the sale of its Ilo Norte and Ilo Este copper projects in Peru to Westminster Resources Ltd (TSX-V:WMR).

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

READ NOW: Latin opens potential lithium production window in Argentina

WATCH NOW: Latin aligns a plan for near-term lithium production in Argentina

Analysis

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.

Quick facts: Latin Resources Ltd

Price: 0.006 AUD

ASX:LRS
Market: ASX
Market Cap: $2.74 m
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