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Latin Resources To Raise A$2m To Propel Peruvian Exploration

Latin Resources (ASX: LRS) has launched a share placement to raise up to A$2 million to progress the company's projects in Peru.

The company has already received applications for the placement of 7.16 million shares at $0.28 each, and will accept oversubscriptions of up to $1 million.

Completion of the placement is expected by the end of August.

Latin is rapidly advancing its Guadalupito Iron Sands Project in northern Peru, last week confirming the project's potential to produce a premium magnetite product.

Minerological test work has confirmed that a high iron (62%) and relatively low titanium (4%) magnetite product can be produced from pilot plant style processing on bulk sample composites.

Work on producing a high purity andalusite concentrate is nearing completion, and to date all indications are that this type of concentrate should have impurities well below even the lower limits of andalusite sold in existing markets.

With both magnetite and the higher value andalusite dominating the Heavy Mineral (HM) assemblage, revenues will be substantial.

With a Resource of 393 million tonnes at an average grade of around 4% HM, that equates to 16 million tonnes of HM, of which 26% is magnetite and 25% is andalusite.

The significance of this is that a magnetite product, which is currently priced between US$125 and $US135 per tonne in Chinese ports, has the potential to generate a minimum of about US$500 million for Latin, while the higher value andalusite could deliver US$1.4 billion in minimum revenues.

Guadalupito has the potential to be the world's largest andalusite deposit.

Targeting over 1Bt resource

Latin is aiming to define over 1 billion tonnes of Resources at Guadalupito by the end of this year.

The company has previously outlined an exploration target of 690 million tonnes on Los Conchales.

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