Latin Resources raising $37m

Latin Resources is on track to raise $37.1 million from institutional investors for its Salinas lithium project in Brazil.

Shares were on offer to investors at a 4.5 per cent discount from its last closing price on April 14 of 11 cents, a 1.8 per cent discount on its five-day volume-weighted average price.

The ASX-listed company based in West Leederville plans to use the funds to accelerate exploration activity and development approvals at their flagship Salinas lithium project.

Latin said several new funds – including unnamed North American battery metal funds and two major Brazilian funds – had participated in the placement.

The company’s largest, shareholder Integra Lithium, which owns about 8 per cent of the company per a recent annual report, also supported the raising.

Latin Resources managing director Chris Gale said the completion of the placement had enabled the company to introduce several North American, Brazilian and domestic institutions to its register.

“The placement provides significant validation of Latin’s portfolio of assets and the company’s ongoing resource expansion drill program, feasibility studies and development approvals for Salinas,” he said.

“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Latin’s Salinas project in this emerging lithium district in Brazil.”

Approximately 353.3 million new Latin Resources shares are set to commence trading on the ASX mid-June.

Canaccord Genuity Australia was lead manager and bookrunner to the placement with PAC Partners and Bell Potter Securities acting as co-managers.

Latin Resources shares were up by 4.5 per cent, last trading at 12 cents per share at 2:25pm AEST.