Latin Resources Limited (ASX:LRS) (FRA:XL5) has raised $652,000 in an oversubscribed placement with the funds to advance its highly prospective Yarara Gold Project in the Lachlan Fold Belt of New South Wales.
The placement to sophisticated and professional investors was oversubscribed to the tune of $102,000 with funds mainly raised from long-standing shareholders following strong interest.
LRS was also able to facilitate a sale of shares from largest shareholder, Lind Asset Management LLC, to a group of sophisticated investors, in conjunction with the placement and Lind will remain a major and supportive shareholder.
The company will issue 59,272,728 shares at an issue price of $0.011 to sophisticated and professional investors.
Shares were offered at $0.011 per share, which represents a 4% premium to the company’s 10-day volume-weighted average price (VWAP).
The placement shares come with a one-for-one free-attaching LRSOC listed option. This has an exercise price of $0.012 and expires on December 31, 2022.
Use of funds
Latin Resources said the funds raised from the placement would go towards exploration work at Yarara and project development.
They will also be used to maintain the company’s South American mineral properties in good standing and for working capital.
The placement shares and options will be issued under the shareholder approval obtained at the annual general meeting held on July 31, 2020.
At the AGM, the company received shareholder approval to issue up to 100 million shares and 100 million listed options (LRSOC) within the three-month period after the date of the AGM.
Yarara Gold Project
Latin Resources is advancing exploration activity at its priority Yarara project and its Noombenberry Halloysite Kaolin project in WA.
Yarara, which offers a near-term, proven mineralised project, is 70 kilometres east of Albury.
The company has entered into a binding farm-in agreement to earn up to 75% of the project which hosts three target areas – Yarara Reefs, Carboona and Ournie.
Latin has started work on land access at the Yarara project while drill permits have been lodged for the Noombenberry project.
New head of exploration
Only last month, Latin Resources appointed highly experienced geologist Tony Greenaway as head of exploration.
A senior geologist with broad experience gained over 23 years covering operations worldwide, Greenaway will be responsible for exploration team management, geological technical overview and operational implementation, contract negotiation, permitting and government regulatory negotiation.