Latin Resources leveraged to project in Chile's copper-rich Atacama region enhancing exposure to strong market

The company is set to secure exposure to the Atacama copper-rich region via the Mostazal copper property, which sits along the major structural control for the majority of Chile’s largest copper mines.

Latin Resources is the largest shareholder of Westminster Resources holding 5,238,158 shares for 27%.

Latin Resources Ltd (ASX:LRS) (FRA:XL5) is gaining exposure to the copper-rich Atacama region in Chile with Canadian affiliate Westminster Resources Ltd (CVE:WMR) entering into an agreement to acquire a 100% interest in the 16-square kilometre Mostazal copper property.

The Atacama Desert region hosts some of the world’s largest porphyry copper deposits including the Mostazal property, which is within the 500-kilometre-long, north-south trending Domeyko Fault System.

This is the major structural control for the majority of Chile’s largest copper mines including Escondida (BHP Group Ltd (ASX:BHP) (NYSE:BHP) and Rio Tinto Limited (ASX:RIO) (OTCMKTS:RTNTF) (FRA:CRA1), Chuquicamata and the El Salvador mine (Codelco).

The project has reported historical production of 120,000 tonnes processed with an average grade of 1.8% copper and Mostazal has a historic indicated resource of 10 million tonnes at 0.95% copper and 8 g/t silver.

Clear copper porphyry target

At Mostazal, known copper mineralisation occurs in a series of stacked stratified lenses measuring 2.5 kilometres long by 2 kilometres wide and 300 metres deep.

High-quality geophysical targets support the company’s thesis that near-surface, copper mineralisation may be a distal expression of a much larger porphyry deposit at depth.

Westminster Resources president and CEO Jason Cubitt said: “We set out to secure an asset that was both transformative to the company and complementary to our current portfolio and I believe we’ve achieved this.

“It’s rare to find a property in this jurisdiction with a technical feature set that so clearly describes a copper porphyry target – yet remains untested by drilling.

“And with the potential to resume and expand upon historic production this was indeed an opportunity we couldn’t turn down.”

Mostazal claims.

Largest shareholder

Latin Resources became the largest shareholder of Westminster after selling its Peruvian copper assets to that company in 2018.

The objective of the sale of the projects was to secure material tangible value for Latin’s shareholders through Westminster’s expertise in South American copper.

Latin currently owns 5,238,158 shares in Westminster or 27% of the issued capital.

Project acquisition terms

The agreement on indicative terms with a private vendor includes a four-year option to acquire a 100% interest in Mostazal and:

• US$40,000 Initial Exclusivity Fee (90-day due diligence period);
• Cumulative $2.9 million payment and $2.6 million expenditure to earn 49% by third anniversary; and
• Cumulative $5 million payment and $5 million expenditure to earn 100% by fourth anniversary (subject to 2% NSR retained by the vendor).