Latitude 66 (ASX: LAT), a diversified gold and critical minerals company, has agreed to sell its 17.5% interest in the Greater Duchess joint venture in Queensland. Latitude 66 is focused on the exploration and development of gold and critical minerals projects. The company aims to create value for shareholders by advancing its portfolio of assets.
Under a non-binding term sheet, Latitude 66 is set to receive an upfront cash consideration of $2 million upon completion of the sale. Additionally, there is a potential contingent consideration payment of $4 million in cash, or equivalent value in ASX-listed shares, if any party acquires 100% of the joint venture within 90 days of the announcement. Carnaby Resources (ASX: CNB), the other partner in the Greater Duchess joint venture, possesses the right of first refusal for the acquisition of Latitude’s interest, which they must exercise within 30 days.
Latitude 66 managing director Grant Coyle stated that the sale of the interest has the potential to deliver immediate non-dilutive funding, aligning with the company’s strategy to unlock value from its Australian assets. He also acknowledged Argonaut’s support in this transaction and their continued support as Latitude 66 progresses its assets to realise value for shareholders. The proceeds from this transaction will enable the company to continue advancing its projects in Finland and Western Australia. The company has also entered an unsecured loan agreement for $750,000 with Argonaut Partners.
The Greater Duchess project, located approximately 70 kilometres south of Mount Isa, covers approximately 1,921 square kilometres. Carnaby Resources has identified multiple undeveloped copper rich iron oxide copper gold (IOCG) and epigenetic ‘Tick Hill’ style gold targets across 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 highlighting a new mine development project located close to existing infrastructure.
