The company’s focus is largely on its portfolio of battery mineral assets, and funds from the divestment of its Peruvian copper assets will assist in progressing these interests.
Through joint venture agreements and the development of established lithium and cobalt projects, Latin Resources will be able to make actively target the battery mineral space.
The company also has other copper projects at various stages of exploration.
Sale of Peruvian copper assets finalised
Westminster Resources is listed company on the Toronto Venture Exchange.
The sale and transfer will entitle Westminster to 100% ownership of a total of 44 concessions, including the Ilo Norte and Ilo Este projects.
These are spread over 36,000 hectares held by Latin’s 100% owned subsidiary, Peruvian Latin Resources SAC.
The formal Property Purchase Agreement has been executed by both parties with Latin Resources to receive the first instalment of USD$150,000 ($195,000) within 7 days.
Issue of 19 million Westminster shares part of consideration
Upon transfer of ownership of the concessions, Westminster will issue 19 million shares to Latin as part of the consideration.
These will be placed into voluntary escrow as milestones are met through to 18 months from the signing of the agreement.
Based on the current share price of WMR of CAD$0.345, the sale transaction has a total value of more than AUD$6.8 million.
This comprises $6.5 million in shares and US$250,000 in cash.
Circa $6.8 million adds tangible value to portfolio
The current market capitalisation of Latin Resources is $26 million based on a share price of $0.01 per share.
This indicates that the divestment of the copper assets for over $6.8m adds significant tangible value to Latin Resource's portfolio.
The company received $1 million in funding from an Asian resources fund in November through a placement at $0.008 to assist in executing on its lithium strategy.
Latin Resources will also maintain a material strategic interest in the projects that have been divested through its 43% stake in Westminster.