The Latin Resources Ltd (ASX: LRS) share price is in the red today.
The company's shares are currently swapping hands at 11 cents, a 4.35% drop. For perspective, the
S&P/ASX 200 Resources Index (ASX: XJR) is down 0.51% today.
Let's take a look at what is happening at Latin Resources
New acquisition
Latin Resources shares are falling today, but they are not alone among ASX lithium shares. The Core Lithium Ltd (ASX: CXO) share price is down 2.63% today. Meanwhile, Lake Resources NL (ASX: LKE) is falling 3.18% and shares in Pilbara Minerals Ltd (ASX: PLS) are sliding 1.58%.
In today's news, Latin Resources announced it would acquire a high-grade lithium tenement in Brazil.
Latin Resources plans to acquire the tenement at the "highly prospective" Salinas Lithium Project in Bananal Valley via its 100% owned subsidiary Belo Lithium Mineracao Ltda.
As part of the agreement, Latin Resources will pay US$15,000 cash and US$15,000 ordinary shares. After 12 months, Latin will pay a further US$75,000.
Commenting on the news, managing director Chris Gale said:
We are very pleased to have exercised our option to acquire the Bananal 830.691/2017 tenement, securing 100% ownership of the area where we will be undertaking an extensive diamond drilling program.
Based on what we have seen so far from the results of the current maiden diamond drilling,
we are very confident that this tenement contains significant potential for high-grade lithium
pegmatites.
Recent drilling at the site has shown high-tenor lithium grades of spodumene pegmatites including 3.22% lithium oxide.
Share price snapshot
The Latin Resources share price has surged 80% over the past 12 months, exploding a massive 279% this year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 1% over the past year.
Latin Resources has a market capitalisation of about $211 million, based on today's share price.
