A cashed-up Latin Resources has further strengthened its project development war chest by paying down the remaining $1.2m of a $6m convertible security funding agreement facility that was struck with New York-based Lind Partners back in June 2018. Whilst the facility was never fully utilised, the remaining debt was seen as holding the company back and the early paydown has strengthened its balance sheet.
The move comes as about $6m worth of Latin’s 1.2c Dec 2022 options are in the money, providing the company with an equity rather than debt river of cash to support its ongoing project development pipeline.
Latin initially struck-up the Lind funding agreement at a time when raising capital was at one of its most difficult phases and it was in need of funding for its Argentinian lithium project.
Fast forward to February 2021 and Latin’s story – and that of the capital markets – is vastly different.
Managing Director, Chris Gale says that following the early termination of the convertible funding agreement, the company has five quarters of funding available to it and no debt to speak of.
Latin held cash reserves of $4.5 million as at 31 December, 2020.
The company recently completed a $5 million Placement to accelerate its exploration and drilling programme at the Noombenberry Kaolin Halloysite project in Western Australia and to further support its prospective gold projects in New South Wale’s exciting Lachlan Fold Belt.
Importantly, it has also attracted a new significant corporate shareholder in Integra Capital who now speaks for 10 per cent of Latin’s stock.
With a growing market interest in kaolin, Latin is well placed to continue to attract backing for its 117 square kilometre Noombenberry project, located less than 300km from Perth.
The company is targeting the tabling of a JORC resource at Noombenberry by the March 2021 quarter.
The price of both kaolin and halloysite has been rising with commercial-grade kaolin selling for up to AU$600 per tonne and high-grade halloysite selling for up to AU$4000 per tonne.
At the same time, Latin is building an impressive landholding position in one of Australia’s premier gold plays – the revered New South Wales Lachlan Fold Belt.
Latin added a 280 square kilometre exploration license application in the heart of the Lachlan Fold Belt not far from the world-class Cadia Mine and the McPhillamys Gold Project.
The Application straddles the regional scale Manildra fault within the Lachlan Transverse Zone, with known gold and copper occurrences within the tenement as well as along strike to the north and south, including recent shallow RC drilling results of 26m @ 1.5g/t Au from 25m, and 3m @ 7.82g/t Au from 57m.
Latin is on a roll now with a suite of interesting looking projects, a funding pipeline supplying money courtesy of options being converted and the all-important debt monkey has jumped from its back.
Get ready now for the geology…..
Is your ASX-listed company doing something interesting? Contact: email@example.com