Junior financing, M&A roundup: Kootenay, Latin Resources, Lara

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Tuesday, June 24, 2014

Vancouver's Kootenay Silver amended its previously announced non-brokered private placement from 7.35mn units to up to 8.33mn units at a purchase price of Cdn$0.30 each for gross proceeds of up to Cdn$2.5mn (US$2.33mn), said a press release.

The net proceeds will be used to finance additional work on the company's Promontorio property in Mexico, its other properties and general working capital.

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Australia's Latin Resources raised Aus$393,600 (US$369,073) via a share purchase plan announced June 19. The company received applications for 10.3mn shares, according to a securities filing.

The proceeds will be used to commence drilling at the Ilo Este copper project in Peru, continued test work on the Guadalupito iron-gold project also in Peru and general working capital.

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Vancouver-based Lara Exploration signed a binding letter of intent granting an option to purchase its Corina gold project in southern Peru to Compañía Mineral Ares, a subsidiary of London-listed Hochschild Mining, a company statement said.

Under the proposed terms, Ares can acquire the Corina property for staged cash payments totaling US$4.15mn, carrying US$2mn in exploration work and paying a 2% net smelter return royalty on any future production

Ares will be the project operator, with Lara providing support with community relations until a community agreement is secured. If Ares fails to secure a drill permit for 20 drilling sites within a year of signing the community agreement, it will pay Lara another US$150,000.