Latin Resources Limited (ASX: LRS) today provided an update on its various projects located in Argentina and Peru, South America.
First being San Luis, the company told that it is seeking to hold further discussions with the province of San Luis with the objective of signing a detailed Memorandum of Understanding (MOU) setting out the criteria to develop a lithium industry in the San Luis.Â
This comes in line to the recently signed preliminary agreement and the social and environmental agreement which marked an essential step in securing the drill permits and support of the local community, respectively.
The communities of San Francisco and Rio Gomez in the province of San Luis had duly given their approval for participating in the development of a sustainable local mining industry based around the known lithium deposits in the locality of the company's projects that include Geminis, Don Gregorio, and Maria Del Huerto. Subsequently, the company had also inked an agreement with the San Luis province to obtain the long-awaited drill permits to commence its exploration program.
With respect to UnCuyo University lithium project, the company informed that it had completed the successful final stage test work on the spodumene to lithium carbonate process pilot plant in Mendoza, Argentina with Latin Resources receiving an advanced technical report on the process and the outcome. The report concluded the establishment of optimal dissolution conditions to obtain a percentage of lithium carbonate extraction of 88%, with 90% of the maximum expected value with the patented procedure.
The University and Latin Resources earlier agreed that after the first results have been obtained and considered successful according to the consideration of the parties, the University will grant the Latin Resources the first option to finance the second stage. With the successful results of the lithium carbonate technological tests obtained by the University, Latin Resources now intends to negotiate to enter into an agreement to move into the next stage of developing a commercial grade pilot plant to test the process on a larger scale.
On the front of corporate strategy, Latin Resources has entered into a joint venture with First Quantum Minerals and Canadian partner Westminster Resources for its copper projects in Peru. The drilling design is already in place, but the final government approval to develop the exploration work to commence official drill by First Quantum Minerals is pending. The company expects to receive this permit in February, and at the same time, the transfer of the concessions from Latin Resources to Westminster is due to be completed.
Managing Director Chris Gale commented, âThe corporate strategy of joint venturing companyâs Copper projects in Peru should hopefully bring some positive news from its JV partner First Quantum and Westminster Resources once the drilling starts on these exciting copper projects in one of the worldâs largest copper provinces.â
In today trading session, 24 January 2019, LRS is trading flat; however, 1,555,295 shares changed hands on ASX. The stock price last traded at $0.002 with a market capitalization of $5.87 million.
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