Latin Resources has farm-in, joint venture and capital raising news pending

Latin Resources Ltd (ASX:LRS) (FRA:XL5) is halted with an announcement upcoming in relation to a farm-in and joint venture arrangement as well as a capital raising. The back-to-back halt, which was granted by the ASX, will extend until the start of normal trading on Thursday, June 25, or when the announcement is released to the market. Shares last traded at 0.6 cents and this week have traded as high as 0.8 cents on news of a joint venture agreement with leading Argentinian investment group Integra Capital SA. JV agreement This agreement covers the company’s lithium pegmatite projects and will see Integra spend up to US$1 million (A$1.4 million) in a JV to explore, develop and earn 50% of the projects in Argentina’s Catamarca province. In addition, Integra also has an option to become Latin’s largest corporate shareholder through an equity investment to take a cornerstone 10% holding. Underpins LRS strategy The agreement underpins the strategic approach by Latin in identifying, acquiring and advancing large-scale land positions of highly prospective mineral projects to attract joint venture partners. Integra’s partnership will underpin an aggressive exploration program on the Catamarca concessions, with the initial aim of delivering a maiden JORC resource. Following this, the JV’s focus will turn to project development, including feasibility, engineering and metallurgy studies to produce a lithium spodumene concentrate. Latin has already developed a high-level scoping study with consulting engineers Primero Group for the Argentinian lithium assets. Free-carried Latin will be free-carried through initial exploration with financing for the construction of the processing plant to be in line with percentage ownership between Integra and Latin of the project partnership at the time of a Final Investment Decision. On completion of its due diligence, Integra has an option to take a 10% stake in Latin and become the company’s largest corporate shareholder. Integra Capital’s founder and president Jose Luis Manzano said: “We are very happy in becoming partners with Latin Resources in Argentina to advance this promising lithium pegmatite project. “We expect to benefit from the knowledge of Latin Resources and contribute with our experience in Argentina and our highly qualified team to advance the project.”