The funds will be used to progress the development of Latin's projects in South America, and for general working capital purposes.
The funding is in the form of a converting loan, with key terms including the principal of $2,500,000, with an interest rate of 12% per annum, with a maturity date of the 31st July 2015
Latin said that the intention of both parties is for the converting loan to be replaced by a convertible note, subject to shareholder approval at a general meeting in the next few months.
Chris Gale, managing director for Latin Resources, commented: "We welcome the continued support of our major shareholder Junefield to provide these funds especially given the current state of the global capital and financial markets.
"The funding will enable the company to progress its stated plans regarding its projects in South America whilst having the right to repay the principal at any time."
Junefield has the right, at its election, to convert the convertible note into ordinary shares of Latin, by giving 15 business days' notice, during which time the company has the right to redeem the principle.
Latin has a portfolio of projects in Peru and is actively progressing its two main project areas: Guadalupito (iron and mineral sands) and Ilo (iron, copper, and gold).
Guadalupito is one of Latin's most advanced projects, with the company to focus on the development of the 1.073 billion tonne at 6.1% HM "Los Conchales" JORC Inferred Resource within it's more than 22,000 hectares of wholly-owned concessions.
Los Conchales includes significant above water table resources that may potentially represent a lower capex mining start up alternative prior to a larger scale dredging operation
Where Guadalupito sets itself apart from other projects, is the strong supporting infrastructure and is located 10 kilometres from Chimbote, home to a major port and one of the largest steel smelters in Peru, which is owned by the Brazilian Gerdau Group, the largest long steel producer in the Americas.
Ilo Norte ready to drill
Ilo Norte is ready to drill, with all permits and authorisations now received.
Highlighting the prospectivity, elevated levels of copper and gold in soil samples are located in the vicinity of previously reported IP geophysical anomaly enhances prospectively of the Copper-Gold drill target at Ilo Norte.
Chip-channel samples returned: 80 metres at 0.19% copper and 0.05g/t gold, and remains open to the SW.
Given the leached nature of the outcrops, these are very encouraging results and suggest great promise for much higher grades in the unleached rocks to be targeted by drilling down-dip to the NE.
Today's funding news is a coup for Latin Resources in gaining $2.5 million in funding in the current market environment from major shareholder Junefield.
Funds will be allocated to Guadalupito which has the potential to become a world class iron and heavy mineral sand project, and also to Ilo Norte which is ready to drill.
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