Latin Resources Ltd (ASX:LRS) has issued more than 261 million new shares following the receipt of applications totalling $523,100 for its Share Purchase Plan (SPP).

The SPP provided registered shareholders with the opportunity to subscribe for up to $15,000 worth of shares at an offer price of 0.2 cents per share without having to pay brokerage or other transaction costs.

This represented a 16% discount to the average market price of the five trading days previous to the offer being opened.

READ: Latin Resources extends closing date for share purchase plan by one week

The funds will be used to bolster the company’s general working capital position, maintain a strong net cash position and to fund exploration, including drilling on its Argentine projects.

The company thanks all shareholders who participated in the SPP for their ongoing support.

Earlier this week, Latin Resources said it was making positive and encouraging progress towards obtaining drill permits for its lithium concessions in San Luis province.

READ: Latin Resources progressing towards obtaining drill permits in San Luis, Argentina

Chairman David Vilensky last month visited Argentina along with managing director Chris Gale.

This visit included meetings with key Argentine stakeholders including provincial officials in San Luis where some of Latin’s most prospective lithium tenements are situated.

The province’s political leaders are concluding their own investigations into the benefits of a lithium industry in the province and how best to develop such an industry ahead of their own fact-finding tour of the emerging lithium industry in Western Australia in the coming month.