Join our daily newsletter At The Bell to receive exclusive market insights
- Minerals explorer Latin Resources (LRS) has completed its convertible security funding agreement with Lind Partners New York
- Through a cash payment, balance payment, and issue of options, the company was able to terminate the agreement early
- Latin Resources leaves the agreement in a strong financial position, with five quarters of funding available and no debt
- The company is also receiving additional funds from option-holders exercising in-the-money LRSOC options
- Latin Resources is down 13.04 per cent and is trading at 4 cents per share
Minerals explorer Latin Resources (LRS) has completed its convertible security funding agreement with Lind Partners New York.
The company first entered the $6 million funding agreement with the institutional investment firm in June of 2018. The convertible security funding agreement was executed in order to help Latin Resources develop and explore its portfolio of lithium and cobalt projects in Argentina.
Two and a half years later, the company has now repaid its debt to Lind in full, terminating the agreement ahead of schedule. As part of the termination agreements, Latin Resources made a cash payment of $300,000, a balance payment of $900,000, and also issued options to Lind.
The company issued 20 million unlisted options, which are exercisable at 3 cents each by no later than December 1, 2022.
In an announcement to the market, Latin Resources’ Board of Directors thanked Lind for the financial support which the firm provided to the company over the years.
Latin Resources leaves the agreement in a strong financial position, with five quarters of funding available, as well as no debt. The company’s cash balance is also receiving regular funding injections as a result of option-holders exercising in-the-money LRSOC options.
The options are exercisable at 1.2 cents each and will expire on December 31, 2022. Currently, approximately $6 million in LRSOC options remain outstanding.
In addition to its strong balance sheet, Latin Resources maintains it’s also in a positive operational position. Several of the company’s projects are being expedited, with assay results from its Noombenberry Halloysite Kaolin project expected this month.
The company expects nothing but blue skies ahead for its numerous gold projects in New South Wales, which are scheduled to begin drilling in 2021’s first quarter.
Latin Resources is down 13.04 per cent, trading at 4 cents per share at 10:55 am AEDT.
