Dear Option holder,
I attempted to contact you earlier today but your details were incorrect/the phone rang out/we only had your email address.
I have been authorised by
Latin Resources (LRS) to reach out to their option holders and provide an update of the company’s plans. You may have got an Option Exercise Note in the post about it. The Company is offering investors the opportunity to convert their options into shares at a price of $0.02 which will raise between $6-7m if they are all fully converted, giving them a big runway into plenty of news flow for 2017.
If you have not
received the paperwork please get in touch with me and I will attempt to get that for you.
Latin Resources is a Mineral exploration and development company with
Copper projects in Peru and lithium projects in Argentina with proven record of developing projects. They have over 8 years of exploration experience across South America and have spent
$20m to date.
The immediate focus for Latin resources currently is its
significant suite of Lithium assets across Argentina. Specifically, they are looking for
Hard Rock Lithium Pegmatites in the area famously known as the “
Lithium Triangle’. Two-thirds of the world’s lithium reserves are found in Argentina and LRS is surrounded by major Lithium players such as Galaxy, FMC, SQM and Lithium Americas.
The funds raised will contribute significantly to additional drilling the company’s
bold ambition to Drill and define a
JORC Lithium resource in the
2nd quarter of 2017. In addition to this they have significant drilling of their Lithium assets on the
Catamarca project, as well as field work on
the San Luis concessions to define drill targets, as well as completing Due Diligence on the
Ansotana project in the Salta region (which comprises of 44,000 hectares of lithium and tantalum pegmatites).
More specifically though is near term news regarding assays from the
Catamarca prospect. News on the 23
rd February confirmed that
Spodumene was evident from the Pegmatites, and that the interpretations show extensions to
the north and depth at both
Ipizca II and Refejos del Mar prospects. We have spoken with management, and they are very optimistic that these results confirm that spodumene exits in these historical Lithium mines. In addition to this, when considering that there are
2 more targets, namely in
Campo el Abra and Santa de Gertrudis,
yet to be drilled in the first pass campaign, then the potential drilling results could be very exciting indeed. Notwithstanding the fact that these 4 targets only represent
8% of their
76,000 hectares at Catamarca alone.
In addition to this, if we consider
Latin Resources, total land package at 100,000 hectares, then immediately the company’s other projects in
San Luis and the Salta region are even more exciting. It must be remembered that the Argentinian government are very supportive of mining since the change in government, and this was evidenced by the fact that after getting tenements approved, they received environmental approval only 6 weeks later. However, moving immediately back to their other flagship Lithium assets, then management are certainly optimistic about the
San Luis concession. Particularly the “Maria Del Huerto’ mining concession, comprising
three parallel dykes (a key early indicator in Kidman Resource’s [KDR] early success) where spodumene was mined between
1936 and 1940. This area has only been
previously excavated to 10m, and spodumene crystals of up to1m in length have been recorded. Drilling should commence in the
2nd quarter of 2017.
The other exciting prospect in in the Salta region, where the Ansotana concession, was mined in the 1940’s for
Tantalum and Bismuth. LRS expects to complete due diligence in
March, and once completed means that the project is
virtually drill ready due to concessions having already been granted.
Finally, there is the
First Quantum Copper JV in Peru, an absolute Tier 1 Mining Partner to have given they are nearly capped at $10bn. Depending on the final option terms (
Refer to Ann 27/07) Latin Resources are essentially free-carried to mine, in exchange for
2% NSR Royalty, or reducing that to 1% for a US $40m payment. Once the permit is approved, it is anticipated drilling could also commence this quarter.
A recent research from
PAC Partners (see attached) indicates that with decent exploration and drilling success, there would be a huge uplift in value, should results be positive. Whilst not giving a formal price target, they looked at a few lithium projects that demonstrated 12-13x uplift in share price. Given the company is still only valued at $30m, given the large land holdings, there should be scope for an upward re-rating if results are good, and that is not even withstanding their First Quantum Copper JV in Peru, nor the
JORC resource slated for later this year
As I mentioned at the start, the company, should their company options be converted, Latin Resources will be well funded and looking into an
exciting 2nd Quarter of 2017 with lots of
news flow.
As I said management wanted us to contact option holders, to give them the first opportunity to convert their options. Should you wish to contact me to discuss the company’s plans further, or to record your sentiment, please do not hesitate to get in touch.
Peloton Shareholder Services is
not in a position to be able to make
any formal recommendation to you as to the suitability of
purchasing additional shares or converting company options and would recommend that you seek advice from your financial adviser before making any decision.
Many Thanks
Yours Sincerely,
Sam Horner
Manager
Peloton Shareholder Services
Level 5
56 Pitt St
Sydney NSW 2000
AFSL No. 406040
PHONE + 61 2 8651 7816
EMAIL
[email protected]
(20min delay)