Lat66 Secures A$6 Million from Sale of Greater Duchess JV Stake
Latitude 66 Limited has agreed to sell its 17.5% interest in the Greater Duchess Copper Gold Joint Venture to Carnaby Resources for A$6 million, combining cash and shares. This strategic move frees up capital for Lat66 to focus on its exploration projects in Western Australia and Finland.
- Carnaby Resources exercises Right of First Refusal to acquire Lat66’s 17.5% JV interest
- Transaction valued at A$6 million, A$2 million cash plus A$4 million in Carnaby shares
- Sale unlocks significant non-dilutive funding for Lat66
- Funds to be redirected towards Western Australia and Finland exploration assets
- Completion expected within the current quarter
Strategic Divestment Unlocks Value
Latitude 66 Limited (ASX, LAT) has announced a significant transaction involving the sale of its 17.5% interest in the Greater Duchess Copper Gold Joint Venture in Queensland. Carnaby Resources Limited (ASX, CNB) has exercised its Right of First Refusal to acquire this stake, agreeing to a total consideration of A$6 million. This amount comprises an upfront cash payment of A$2 million and A$4 million in fully paid shares based on Carnaby’s recent trading price.
Non-Core Asset Monetisation
The Greater Duchess Joint Venture, located approximately 70 kilometres southeast of Mount Isa, has been a notable copper-gold exploration project for Lat66. However, the company has identified this asset as non-core to its strategic focus. By divesting its interest, Lat66 is effectively unlocking capital without diluting its share base, a move that Managing Director Grant Coyle highlighted as a positive outcome for shareholders.
“Carnaby’s decision to exercise its right of first refusal has maximised the Greater Duchess JV sale transaction value for Lat66, unlocking the full A$6 million consideration from the non-core asset,” Coyle said. “It is pleasing to deliver this outcome for LAT66 shareholders, providing significant non-dilutive funding for the Company that will be redirected towards advancing our high-potential exploration assets in Western Australia and Finland.”
Implications for Lat66’s Growth Strategy
This transaction aligns with Lat66’s broader strategy to concentrate resources on its more promising exploration projects. The injection of funds will support ongoing exploration and development activities in Western Australia and Finland, regions where Lat66 sees considerable upside potential. The sale proceeds provide financial flexibility without the need for equity dilution, preserving shareholder value.
Completion of the transaction is anticipated within the current quarter, with formal documentation underway. The deal also follows a prior announcement in early July where Lat66 had entered into a non-binding term sheet for the sale of the same interest, contingent on Carnaby not exercising its right of first refusal.
Looking Ahead
For Carnaby, acquiring full control of the Greater Duchess JV interest consolidates its position in a project with established mineral resources and recent positive scoping study results. For Lat66, the divestment marks a clear pivot towards prioritising assets with higher strategic importance and growth potential.
Bottom Line?
Lat66’s sale of its Greater Duchess JV stake delivers vital funding to fuel its next phase of exploration growth.
Questions in the middle?
- How will the share issuance from Carnaby impact Lat66’s equity structure and investor sentiment?
- What specific exploration milestones does Lat66 plan to target in Western Australia and Finland with the new funding?
- Could Carnaby’s full ownership of the Greater Duchess JV accelerate development timelines or trigger further investment?
