Vancouver – Calling it a strategic investment, Fronteer Development Group (FRG-T, FRG-X) has taken down a private placement in Latin American Minerals (LAT-V) to hold a 17.42% interest in the junior.
Fronteer purchased 4,932,000 units of Latin American at 25 apiece, representing about 37% of its 13.4-million unit financing that grossed $3.35 million for the Argentina-focused explorer. Units are comprised of a common share plus a half-warrant exercisable in full at 35 for one year.
Latin American Minerals graduated from capital pool-status earlier this year by acquiring an option for 75% of the La Carolina project in San Luis Province, Argentina. The property covers a portion of a belt of gold mineralized associated with diatreme structures. Historic drilling has intersected wide intervals of mineralization including a 1988 hole that cut 138 metres of 2.5 grams gold per tonne. High grade intervals encountered include a 3-metre section of core averaging 59 grams gold.
The company also acquired option rights to the Cerro Amarillo copper-gold porphyry project earlier this year. The property, located in Argentina’s Mendoza Province, contains abundant surface mineralization and geophysical anomalies that have not been tested.
Shares of the junior jumped 72% on the news of Fronteer’s investment, to close up 23 at 55 apiece. Following closure of this latest financing, Latin American will have about 28.3 million shares outstanding to give it a market capitalization of $15.6 million.
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