Latin Resources seems to have put another one in the back of the net with its investment into Solis Minerals’ Jaguar lithium project. Pic via Getty Images.
Mining
Latin Resources is staking its mining investment Solis Minerals with $3 million towards an oversubscribed capital raising for its flagship Jaguar lithium project in Brazil.
The $3m placement means Latin Resources (ASX:LRS) will receive ~5,454,545 fully paid shares at 55c a share, increasing its holding in the explorer from 13.13% to 17.79%.
With ~$50m cash on hand and no debt, Latin seems well within its rights to make an investment it believes holds significant value and have the company gain further exposure to the burgeoning Brazilian lithium market.
Solis Minerals’ (ASX:SLM) Jaguar lithium project contains significant prospective pegmatite targets with 4.95% Li2O returned from recent rock chip samples and a geological setting consistent with other hard rock lithium provinces in Brazil, notably Latin’s own Salinas project.
Solis expects to commence drilling on Jaguar in June 2023, with Latin intending to support Solis by making available its nous in exploration guidance and country experience.
Latin is backing Solis to undertake a successful exploration program and deliver on the full potential of Jaguar.
MD Chris Gale said that while Latin has a very focused approach to developing its own Salinas project, the company is delighted to provide support to Solis with the cornerstone investment to fund exploration at Jaguar.
“We are pleased to be in a position to provide exploration guidance and country experience to support the team at Solis,” Gale said.
“The opportunity for hard rock lithium in Brazil is significant, and the early mapping of the extensive pegmatite body at Jaguar shows that Bahia State has the potential to become a new lithium province.
“We have great confidence that the Solis team will progress this project to potentially become a Latin 2.0.
“This investment also presents an exciting opportunity for Latin to continue to support the growth of the lithium industry in Brazil, which we believe is on track to be one of the top lithium producing countries in the coming years.”
Latin Resources has been in the news lately regarding its own projects, notably letting the market know of its imminent resource upgrade at Colina after wrapping up almost 40,000m of diamond drilling.
This article was developed in collaboration with Latin Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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