Latitude 66 to Divest 17.5% Stake in Non-Core Greater Duchess Copper-Gold JV

Diversified gold and critical minerals company Latitude 66 (ASX: LAT) will receive a significant boost to its bank balance after agreeing to sell its 17.5% interest in the Greater Duchess joint venture in Queensland.

Under a non-binding term sheet, Latitude 66 can receive an upfront cash consideration of $2 million payable upon completion with a potential contingent consideration payment of $4m in cash (or equivalent value in ASX-listed shares) if, within 90 days of signing the announcement, any party acquires 100% of the joint venture.

Greater Duchess joint venture partner Carnaby Resources (ASX: CNB) has right of first refusal for the acquisition of Latitude’s interest, which it must exercise within 30 days.

Non-Dilutive Funding

Managing director Grant Coyle said the sale of the interest has the potential to deliver immediate non-dilutive funding and is in line with the company’s strategy to unlock value from its Australian assets.

“We are grateful for the support from Argonaut in this transaction, as well as their ongoing support, as we progress the company’s assets in order to realise value for shareholders.”

“This transaction is well timed to […] enable the company to continue advancing its Finnish and Western Australian projects.”

Latitude has also added an unsecured loan agreement for $750,000 with integrated investment house Argonaut Partners.

Multiple Targets

The Greater Duchess project is located approximately 70 kilometres to the south of Mount Isa on a land holding of approximately 1,921 sq km, with Carnaby identifying multiple undeveloped copper rich iron oxide copper cold (IOCG) and epigenetic ‘Tick Hill’ style gold targets over a 100km corridor at the site.

A maiden interim mineral resource estimate for the project covers five mineral deposits for 21 million tonnes at 1.3% copper, 0.2 grams per tonne gold for 283,000t of copper and 148,000 ounces of gold.

Carnaby released a scoping study in May 2024 that highlighted a robust new mine development project located close to existing infrastructure.