Latin Resources bags $6 million funding package to advance...

Latin Resources bags $6 million funding package to advance lithium, cobalt projects

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13:56 19 Jun 2018
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Initial funding of $2 million
Latin Resources Ltd (ASX:LRS) has executed a $6 million convertible security funding agreement (CSFA) with an optional equity earn-in to its Argentinean lithium projects with The Lind Partners, New York.
The CSFA will provide a source of capital to enable Latin to pursue its program of project development and exploration across its portfolio of lithium and cobalt projects in Argentina.
Favourable conversion terms for Latin

The funding will include an initial amount of $2 million to be advanced to Latin, and a further investment of up to $4 million, subject to certain conditions having been met.
Lind will have the option, with the permission of Latin, to waive the repayment of $2.4 million for the initial amount and, instead, take a 5% direct equity ownership into the lithium projects.
It is worth noting that the CSFA has a fixed conversion price of 1.5 cents per share, which represents a 100% premium to the company’s 5-day volume weighted average share price.
Latin can elect to pay back the convertible note with cash at any time.
READ: Latin Resources set to drill lithium targets in Argentina after securing mining concessions

The new funding will provide working capital to pursue exploration activities including the commencement of drilling at Latin’s Catamarca lithium projects which have now been granted.
Latin will also submit drill permits for the Lomo Pelada and Ipizca 1 concessions in Catamarca.
In addition, the company will start defining drill targets at its La Rioja cobalt project.
READ: Latin Resources eyes cobalt targets near historical cobalt mine in Argentina

Once these drill targets are defined, permits will be applied for with drilling to commence thereafter.
Latin managing director Chris Gale said: ”The CFSA facility provided by our funding partners, Lind, provides the company necessary working capital as we expand operations in Argentina.
“Compared with an equity placement, the convertible security funding provides a cost effective source of capital and may also reduce the potential dilution of existing shareholders.”