In its quarterly report, Latin Resources (ASX:LRS) reported progress on its flagship Salinas Lithium project in Brazil and highlighted the strategic acquisition agreement with Pilbara Minerals (ASX:PLS). The proposed transaction, valued at approximately $560 million (approximately $370 million), would see Latin Resources shareholders receive 0.07 Pilbara shares per Latin share, a deal that offers a 66% premium over the recent trading price of Latin. Pilbara’s interest in Latin Resources stems from the Salinas project’s potential as a large-scale, high-quality lithium operation in the mining-friendly region of Minas Gerais, Brazil.
Latin Resources has focused on developing Salinas as a high-grade hard rock lithium source, establishing a Mineral Resource Estimate (MRE) of 77.7 million tonnes at a grade of 1.24% Li2O. Project milestones this quarter include a definitive feasibility study (DFS) and a Pilbara integration committee to accelerate development plans.
“We are proud to have achieved so much with Salinas in a short time, and this transaction with Pilbara will enhance project security and shareholder value,” said Chris Gale, chief executive officer of Latin Resources.
Additionally, Latin Resources has initiated initiatives to divest its non-strategic assets in Peru and Argentina.
The shares are trading up 2.56% at 20 cents.