THE BOURSE WHISPERER: Latin Resources (ASX: LRS) finalised the sale of the company’s Peruvian copper assets to TSX-V-listed Westminster Resources Limited (WMR).
Latin Resources said the sale and transfer will entitle Westminster to 100 per cent ownership of a total of 44 concessions, including the Ilo Norte and Ilo Este projects, spread over 36,000 hectares that are held by Latin’s 100 per cent-owned subsidiary, Peruvian Latin Resources.
Westminster has completed due diligence and the formal Property Purchase Agreement has been executed by both parties with Latin to receive the first instalment of USD$150,000 ($195,000) within seven days.
Based on the current share price of WMR of CAD$0.345 the sale transaction has a total value of more than $6.8 million comprising $6.5 million in shares and US$250,000 in cash.
“The objective of the sale of the projects was to secure material tangible value for Latin’s shareholders given that the projects are no longer a strategic priority of Latin and are surplus to its requirements,” Latin Resources explained in its ASX announcement.
“It will also save the company $140,000 in annual concession costs.”
Latin Resources said the divestment of its copper projects will now allow the company to focus on its lithium and cobalt projects in Argentina, where it has 101,096 Hectares under application or agreement in San Luis Province and over 70,000 hectares in the Catamarca province.
“This is the largest lithium hard rock pegmatite land holding in Argentina,” the company claimed.
“The company remains in discussions with a number of parties in relation to joint venture and offtake opportunities to assist in and fast track the development of its lithium projects.”