Tiny Latin Resources has caught a rocket with its lithium, kaolin, gold and copper plays
Lithium, gold, copper and kaolin exploration company Latin Resources (ASX:LRS) has seen its share price spiral higher since completing a $5m share placement in December.
The capital raising led by broker Euroz Hartleys was used to accelerate exploration drilling of the company’s Noombenberry kaolin halloysite and Lachlan Fold Belt gold projects.
The share placement was completed at an issue price of 3 cents per share, and the company is now trading at 8 cents per share, a rise of 166 per cent in two months.
“The interest shown by Euroz Hartleys’ clients in the capital raising is a testament to the quality of Latin’s projects that are now drill ready and positioned to move into the next phase of development,” said Latin Resources’ executive director Chris Gale.
He revealed the company has an “extensive schedule of drilling across multiple targets” throughout 2021, starting at its Noombenberry halloysite-kaolin project in WA.
The Noombenberry project is one of Australia’s few known ultra-high grade deposits of tubular halloysite and is located near the WA town of Merredin, 300km east of Perth.
The resource has similar geology to Andromeda Metals’ (ASX:ADN) halloysite project in South Australia which goes into production in 2022.
The global market for kaolin is expected to reach a value of $US8.2bn by 2024, and has an annual compound growth rate of 6.5 per cent.
Paper-making, ceramics, paints, plastics and cements are the main uses for kaolin as well as applications in the storage of hydrogen, carbon dioxide and super capacitors.
Latin Resources has two gold projects in NSW’s Lachlan Fold Belt in Manildra 30km west of Orange, and Yarara 70km east of Albury that has 20 dormant high-grade gold mines.
The third and fourth legs of Latin Resources’ business platform is its lithium and copper projects in South America.
Argentina’s Catamarca province is host to the company’s hard rock spodumene deposit that Latin Resources said has the “potential to host a world-class lithium deposit”.
Integra Capital is Latin Resources’ development partner for the Catamarca prospect and has pledged to invest $US1m into it for a 50 per cent share.
There are two lithium projects within the Catamarca deposit, Villisman and Ancasati.
The firm has a joint venture partnership for its copper project in Peru with Canada-based company First Quantum Minerals, one of the world’s largest copper companies.
Southern Peru on the western flanks of the Andes mountain range has more than 125 billion pounds of contained copper in published reserves and resources.
Latin Resources’ copper deposits are 70km from the port city of Ilo in southern Peru, and the area has three large copper projects accounting for 40 per cent of Peru’s copper output.
First Quantum has funded some geophysics surveying over the company’s copper deposit and is planning a drilling program for selected targets.
The ASX explorer’s Peru-based copper prospects are held by Canadian company Westminster Resources in which it has a 30 per cent stake.
Latin Resources has a relatively low market value at $95m when compared to other ASX companies with similar asset holdings such as Andromeda Metals at $667m.