Latin Resources (ASX: $LRS) Scheme Implementation Agreement with Pilbara Minerals

Latin Resources Limited (ASX: $LRS) has entered into a binding Scheme Implementation Agreement (SIA) with Pilbara Minerals Limited (ASX: $PLS) to acquire 100% of the shares in Latin Resources by way of a Court-approved scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth). Shareholders will receive 0.07 new Pilbara Minerals shares for each Latin Resources share held and will own approximately 6.4% of Pilbara Minerals' shares upon implementation of the Scheme. The acquisition is expected to be accretive to Pilbara Minerals and deliver significant value to both companies' shareholders. Latin Resources intends to dispatch a Scheme Booklet containing further information in mid-October 2024, with the Scheme Meeting expected to be held in mid-November 2024.

Latin Resources Managing Director's Commentary on the Agreement

Latin Resources' Managing Director, Chris Gale, has agreed to join Pilbara Minerals as a consultant for a period of 12 months to provide leadership continuity with key stakeholders. The acquisition will provide Pilbara Minerals with the optionality to sequence new supply and diversify into new growth markets for lithium such as Europe and North America. The Salinas Lithium Project has the potential to become a top 10 hard rock lithium operation by production globally and is located in Minas Gerais, Brazil.

Outlook for the Scheme Implementation Agreement

The Scheme Implementation Agreement between Latin Resources and Pilbara Minerals is expected to be highly compelling and mutually beneficial for both companies. The acquisition will provide Pilbara Minerals with the optionality to sequence new supply and diversify into new growth markets for lithium. Latin Resources intends to dispatch a Scheme Booklet containing further information in mid-October 2024, with the Scheme Meeting expected to be held in mid-November 2024. The agreement outlines the conditions precedent to the scheme, the implementation process, and the entitlement of scheme participants to receive the scheme consideration. The scheme is subject to court approval and will become effective upon satisfaction of the conditions precedent.