Latitude 66 (ASX:LAT) has agreed to sell its non-core Piastri Project to Capricorn Metals (ASX:CMM) for $1.5M in Capricorn shares, unlocking value from an asset granted just 12 months ago.
The deal is unconditional and expected to complete within five business days.
Right asset, right buyer
Piastri sits in WA’s Yalgoo-Singleton Greenstone Belt, just 200m east of infrastructure linked to Capricorn Metals’ Ricciardo Project.
That made Capricorn the obvious buyer.
Ricciardo hosts 24.5Mt @ 2.5g/t AuEq for 1.96Moz AuEq, giving Piastri clear strategic relevance to its neighbour.
Rather than spend further capital developing a non-core project, Latitude 66 is monetising it and taking payment in Capricorn shares.
That means no shareholder dilution, and continued exposure to Capricorn’s upside.
Figure 1: Piastri Project area map.
Capital goes back to the core
The sale frees Latitude 66 to keep its attention on Finland and Laverton.
In Finland, recently granted exploration permits are allowing work to accelerate at the KSB Project.
In WA, fresh Laverton drilling is being incorporated into updated resource calculations.
Managing Director Grant Coyle said the sale keeps capital and focus on the company’s core portfolio.
More value to unlock?
Piastri may not be the last asset sold.
Latitude 66 says it is reviewing its wider non-core portfolio for further opportunities to monetise assets without issuing new shares.
That gives investors two potential value streams. Advancement of the core portfolio and selective sales of assets sitting outside it.
