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Latin Resources is now debt free after concluding convertible security funding agreement with Lind Partners in New York

Published: 14:03 01 Feb 2021 AEDT

Latin Resources Ltd - Latin Resources is now debt free after concluding  convertible security funding agreement with Lind Partners in New York
LRS is in a strong operational position with several projects now being expedited

Latin Resources Limited (ASX:LRS) has extinguished  its convertible security funding agreement with Lind Partners New York (Lind) as announced to ASX on June 19, 2018 repaying the debt in full.

Following this early termination of the convertible funding agreement with Lind the company remains in a very positive financial position with five quarters of funding available and no debt.

The company’s cash balance is also being strengthened by a steady flow of funds from option holders exercising in-the-money LRSOC options of which around $6 million remains outstanding.

Strong operational position

Latin Resources is also in a strong operational position with several projects now being expedited.

The company is awaiting assay results for the Noombenberry Halloysite Kaolin Project in WA expected in February, has strong JV partners for the development of its lithium and copper projects and believes there are ‘blue skies ahead’ for the multiple, exciting NSW gold projects, which are expected to start drilling in Q1 2021.

As part of the termination arrangements between the company and Lind, the following was agreed:

  • Cash payment of $300,000 (paid on 29 December 2020);Balance payment of $900,000 (paid on 7 January 2021); and
  • Balance payment of $900,000 (paid on 7 January 2021); and
  • Issue of 20,000,000 unlisted options exercisable at $0.030 on or before 1 December 2022 (issued on 29 January 2021).

The board would like to sincerely thank Lind for their financial support of the company over the years.

Lithium outlook

Notably, the company holds a number of key resource projects across Australia and South America including a major lithium project in Argentina.

Argentina is the world’s second largest lithium producing company in the world.

The battery metals sector is rallying due to recent announcements about Electric vehicles growth throughout the world.

Latin announced in its recent quarterly report that it will be commencing work on its Argentinian lithium projects with its $16b partner Integra Capital in the first quarter of 2021.

This is very positive news for Latin Resources moving forward.

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