Latin Resources shares have rocketed after the company announced China-backed Junefield Holdings had taken a 16.8 per cent stake in the company after executing two agreements worth a combined $52 million.
At close of trade today Latin’s stocks had closed up 27 per cent, to 23.5 cents.
The agreements entail the placement of up to 30 million Latin Resources shares priced at 28 cents to Junefield High Value Metals, to raise $8.4 million.
Also, Junefield-backed Total Genius Iron Mining will take a 70 per cent earn-in option for Latin’s Mariela and Dylan prospects in Peru, by funding all activities leading to the completion of a bankable feasibility study, up to a total of $35 million.
Funds raised through the placement will be applied to accelerating exploration and drilling activities at the Guadalipito project.
“The capital raising will result in the introduction of a new long-term cornerstone investor, further strengthening the company’s share register as it continues to rapidly advance the Guadalipito iron mineral sands project and its other highly prospective assets in the established Ilo mining district,” managing director Chris Gale said.
“Attracting a cornerstone investor that is as reputable and experienced as Junefield is a major achievement and a key milestone in the advancement of our Peruvian assets.”
Also today, Latin announced the acquisition of the Dylan III and Dylan IV concessions for $12 million, which are located adjacent to its Mariela project in Peru.
“Latin is very pleased to be able to secure the Dylan concessions as the exploration work to date indicates that these concessions hold an extension to the significant geophysical anomaly encountered on Mariela,” Mr Gale said.
“By securing these concessions we believe that we will have the whole anomaly within our title and are very excited with the prospectivity of the combined concessions.”
