PERTH (miningweekly.com) – ASX-listed Latin Resources has announced plans to divest of its wholly owned subsidiary Lotus Minerals, which holds the Lachlan Fold Belt project, in New South Wales.

The Lachlan Fold Belt project comprises six project tenements that include commodities such as copper, gold, nickel and platinum group metals.

Latin Resources on Friday reported that it had signed a binding heads of agreement (HoA) with unlisted Maverick Minerals for the sale of Lotus Minerals in exchange for six-million fully paid ordinary shares in Maverick, at a deemed price of 20c each, and five-million options which are exercisable at 30c each within five years from issue.

Maverick will issue a further one-million shares to Latin Resources, at a deemed price of 20c each, to extinguish an inter-company loan payable by Lotus to Latin, and Maverick will also raise A$500 000 in seed funding through the issue of five-million shares at a price of 10c each.

Maverick will raise a further A$5-million, through the issue of 25-million shares at a price of 20c each under its planned initial public offering (IPO), where a minimum capital raise of A$4-million is required.

Furthermore, loyalty options will be issued to shareholders in Maverick at the three-month anniversary of the IPO on a two-for-five basis, resulting in 17.2-million options being issued.

“Maverick is in the fortunate position of having a great portfolio of projects to begin its journey, and having the support of Latin Resources as a major shareholder and with a vested interest at board level too,” said Maverick MD Sam Smith, who has been appointed to lead the company through its ASX-listing process.

The sale of Lotus will allow Latin Resources to focus on its flagship Salinas project in Brazil, as well as its Cloud Nine, Catamarca and MT-03 projects.

This streamlining will also enable Latin Shareholders to participate in the growth of Maverick, with the prospective nature of the Lachlan Fold Belt Project warranting investigation by its own experienced board and management team.

The transaction with Maverick is subject to a number of conditions, including completion of due diligence and Maverick completing an initial capital raise of at least A$4-million.