Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Latin Resources' Largest Shareholder Lifts Holding, Could There Be Corporate Moves Afoot? 0 comments
    Jun 29, 2012 2:58 AM

    Latin Resources (ASX:LRS) has been sent a change of substantial shareholding Form 604 notice by its largest shareholder, Hong Kong based Junefield Group that it has acquired a further 3,750,000 shares.

    In an off-market transaction Junefield Group acquired the shares at $0.28 per share that takes Junefield Group to 18.7 per cent of Latin Resources.

    Which edges it closer to the takeover threshold of 19.9 per cent. After that it's daylight.

    Cape Lambert Australia is the second largest shareholder in Latin Resources. RMB Resources acquired a 5 per cent stake in May.

    Junefield participated in an A$8.4 million placement via Junefield High Value Metals Investments in March 2012.

    Highlighting the confidence of Junefield in the operations of Latin Resources, the placement was struck at a then 51% premium to the last traded price prior to the announcement of the deal.

    Intriguingly, the founder of Hong Kong's Junefield Group has built a $2 billion fund to invest in resources and in Peru. Junefield, itself has been drilling at a property around Latin's Ilo project and Mariela and is known to be bullish on the exploration potential.

    Recent M&A activity and acquisitions by major mining companies in the area is a testament to the potential.

    Latin Resources and Hong Kong's Junefield Group have begun a highly anticipated maiden drilling program at the company's Mariela Iron Project in the Ilo district of southern Peru.

    The agreement allows Junefield to earn up to 70% of the Mariela Project by funding all activities to the completion of a Bankable Feasibility Study or to a total cost of A$35 million.

    This region has become a "hotspot" for copper discoveries and is a renowned iron oxide copper gold district which should see lightly capped Latin Resources being watched closely now that drilling has begun.

    Analysis

    Latin Resources' MD Chris Gale would likely be supportive of the increase in shareholding by Junefield Group and it is a vote of confidence in the company and its potential to spring from its current valuation. That said, its investment does add spice and an element of intrigue and potential corporate activity to a register that was already interesting...and just got a whole lot more so.

    Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.