PERTH (miningweekly.com) – Minerals explorer Latin Resources will raise A$35-million in a share placement to accelerate work at its lithium project in Brazil.

The company on Thursday announced plans to place 253.6-million shares, at a price of 16c each, under its existing placement capacity. One new option would also be attached to every two shares, with an exercise price of 22c each, and a five-year expiry date.

Latin Resources told shareholders that demand for the placement was strong, with a A$15-million cornerstone investment made by Electrification and Decarbonization AIE LP Fund (E&D Fund).

E&D Fund is a fully owned subsidiary of Toronto-based Waratah Capital Advisers.

Funds raised in the placement will be used on an aggressive resource definition programme at the Bananal Valley prospect, at the Salinas lithium project, and to fund exploration at the Monte Alto and Salinas South lithium prospects.

Funding will also go towards a prefeasibility study, a direct shipping ore study, and metallurgical test work at the Cloud Nine halloysite-kaolin deposit, in Western Australia, and to fund exploration drilling work at a copper target in Peru.

“Our results at Salinas have been exceptional, revealing we have some very high-grade lithium spodumene mineralisation. We consider that winning the support of a technical-focused group, like Waratah’s E&D fund, who are very well-versed in the lithium sector, is a big tick of approval for what we are doing and where we are headed with our Salinas lithium project,” said Latin Resources MD Chris Gale.

“What’s really exciting is the roadmap ahead for Latin Resources shareholders. We are relatively early in the discovery phase of our Salinas lithium project, and we have much work ahead of us, however, the level of attention we are receiving from industry players suggests we are not alone in thinking that Latin has a chance to develop a highly valuable lithium project in Brazil.”