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Latin Resources Launches A$1M Raising For Peruvian Exploration

Latin Resources (ASX: LRS) is undertaking a non-renounceable entitlement issue of options to raise just over A$1 million to progress its projects in Peru.

The company is offering one option for every two shares held by shareholders registered at record date at an issue price of $0.01 per option.

The offer is expected to raise up to approximately $1,016,197 through the issue of up to 101,619,686 new options based on total shares currently on issue of 203,239,373.

Proceeds from the option issue will be used to fund Peruvian exploration, in particular the drilling program at the Ilo Norte copper-gold project.

At Ilo Norte and Ilo Sur, Latin has a considerable tenement footprint in a highly prospective region with several tier one projects in proximity to Latin's holdings.

Active in the broader Ilo region are several majors, including BHP Billiton (ASX: BHP) and Southern Copper - among others, who have a large presence in the region.

In 2011, Peru was the world's second largest copper producer exporting more than 1.2 million tonnes of Copper, half of which was mined less than 100 kilometres of Ilo Norte at Cuajone, Toquepala and Cerro Verde.

The Ilo Norte prospect represents a potential IOCG type system located in the Southern Coastal IOCG belt around Ilo.

Latin will drill test a new copper-gold target that was discovered in an earlier induced polarisation survey.

Anomalous chargeability values form a broad zone that extends from about 300 metres below surface over about 2000 metres width.

The anomaly remains open to the northeast and continues to deepen consistent with the dip of the stratigraphy.

The anomalous geophysical responses appear to coincide with the quaternary covered, down dip extension of a strata-bound Skarn unit that outcrops down the slope to the west of the survey area and an overlying zone of intense Silica-Albite alteration, both very favourable indications of potential copper-gold mineralisation.

Petrographic study of a sample from the oxidised skarn at surface showed evidence of the copper bearing sulphide, chalcopyrite.

Previous drill testing by Latin in 2011 was just to the west and downslope of the newly discovered alteration system and returned several intersections of disseminated copper-gold bearing magnetite-pyrite mineralisation that contained potentially sub-economic grades over interesting widths.

These intersections included 36 metres at 0.29% copper and 0.09 grams per tonne (g/t) gold from 30 metres depth, with a higher grade interval of 14 metres at 0.55% copper and 0.13g/t gold; 14 metres at 0.29% copper and 0.09g/t gold from 98 metres; and 22 metres at 0.25% copper and 0.09g/t gold from 254 metres.

Ilo Norte is very favourably located less than 20 kilometres from the port of Ilo and 10 kilometres from a currently operating smelter.

The new funds from the option entitlement issue will build on Latin's cash in hand at the end of the December quarter of $1.01 million.

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