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Latin Resources (ASX:LRS) - Managing Director, Chris Gale - The Market Herald
Managing Director, Chris Gale
Source: Proactive Investors
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  • Latin Resources (LRS) has entered a trading halt to prepare for an upcoming capital raise
  • The company will remain in the halt until December 7 or when an announcement is made
  • Latin Resources also announced it's planning to buy the Burdett Gold Project in NSW from Syndicate Minerals (SYN)
  • The company will acquire 100 per cent of the project subject to the completion of due diligence and the meeting of certain obligations
  • Burdett will be acquired via a $1000 deposit and the issue of 10 million shares
  • Shares in Latin Resources last traded at 3.4 cents on December 2

Latin Resources (LRS) has entered a trading halt to prepare for an upcoming capital raise.

The company is yet to disclose how much it is aiming to raise or what it will be using the funds for.

Latin Resources will remain in the halt until the earlier of December 7 or when an announcement is made.

Burdett acquisition

Latin Resources also announced it's planning to buy the Burdett Gold Project in NSW from Syndicate Minerals (SYN).

The company will acquire 100 per cent of the project subject to the completion of due diligence and the meeting of certain obligations.

Upon execution of the binding heads of agreement (HOA), Latin Resources will pay a $1000 deposit and Syndicate will provide information regarding the completion of the due diligence.

LRS will then have 30 days to complete the due diligence — but if that's not completed by January 5, either party may terminate the HOA.

If Latin chooses to proceed with the HOA then it will issue five million fully-paid ordinary shares to Syndicate which will be restricted from sale for three months from issue.

Latin will then issue another five million fully-paid ordinary shares to Syndicate which will be restricted from sale for 12 months from issue.

Finally, Syndicate will receive a 1.5 per cent net smelter return over all minerals extracted and sold.

Burdett lies in the Canowindra Shear Zone, and post completion of the acquisition, Latin Resources will hold over 530 square kilometres of the region.

It covers the northwest extension of the Lady Burdett Gold Mining centre, where previous work has returned results such as three metres at 7.82g/t gold and 26 metres at 1.5g/t gold.

"The addition of the Burdett Gold Project to the company's NSW portfolio adds another strong layer of prospectivity," Managing Director Chris Gale said.

"We are now looking to commence our reconnaissance field work to refine targets for our drilling campaign to commence in the first quarter of 2021. This again is another major step forward for the company," he added.

Shares in Latin Resources last traded at 3.4 cents on December 2.

LRS by the numbers
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