Latin Resources (ASX:LRS) is to sell its five Mariela concessions in Southern Peru for $2.5 million, to Total Genius Iron Mining SAC to concentrate on exploration of its IOCG and Porphyry Copper deposits.
Latin is planning to use the funds from the sale to further explore in the Ilo region, maintain its Guadalupito project and for general working capital.
The 3,200 hectares of concessions, represent just under 3% of Latin's 113,830 hectares of 100% owned concessions in the highly prospective IOCG/Porphyry Copper coastal belt in Southern Peru.
The agreement will release funds for Latin Resources, which in the current tough capital raising environment is a significant plus.
As managing director Chris Gale said, "we have been able to capitalise on the Mariela concessions which, following completion of this deal, will have provided funding for the company of over US$11 million dollars over 2 years.
The Mariela exploration foray was also significant in that it brought well funded, Hong Kong based Junefield Holdings, which holds a 22.2% shareholding in Latin Resources.
The Mariela concessions are subject to an Earn-in Option Agreement announced in November 2011 whereby Junefield Group subscribed to a placement of 30,000,000 ordinary shares in Latin at a 51% premium to the then share price for total proceeds of US$8.1 million.
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