In its quarterly report, Latin Resources (ASX:LRS) reported advancements in its flagship Salinas Lithium Project in Brazil and highlighted the strategic acquisition agreement with Pilbara Minerals (ASX:PLS). The proposed transaction, valued at around $560 million (approximately US$370 million), would see Latin Resources shareholders receive 0.07 Pilbara shares per Latin share — a deal offering a 66% premium on Latin’s recent trading price. Pilbara’s interest in Latin Resources stems from the Salinas Project’s potential as a large-scale, high-grade lithium operation in the mining-friendly region of Minas Gerais, Brazil.
Latin Resources has focused on developing Salinas as a top-tier hard rock lithium source, establishing a mineral resource estimate (MRE) of 77.7 million tonnes at a grade of 1.24% Li2O. The project's milestones this quarter include a definitive feasibility study (DFS) and an integration committee with Pilbara to fast-track development plans.
“We are proud to have achieved so much with Salinas in a short time, and this transaction with Pilbara will enhance project security and shareholder value,” said Latin Resources Managing Director Chris Gale.
Additionally, Latin Resources has initiated steps to divest its non-core assets in Peru and Argentina.
Shares are trading 2.56% higher at 20 cents.
