Latin Resources has signed a binding heads of agreement to divest a 100% stake in Lotus Minerals to Maverick Minerals.

Lotus Minerals owns a 100% stake in the Lachlan Fold Belt Project in New South Wales, Australia.

As per the deal terms, Maverick will issue six million fully paid ordinary shares to Latin Resources at a deemed issue price of $0.20 a piece.

Maverick will also issue five million options to acquire shares (options) and a further million Maverick shares at an issue price of $0.20 per share to Latin Resources.

Furthermore, Maverick will raise seed funding of $500,000 by issuing five million of its shares at $0.10 per share.

Maverick will also raise $5m (before costs) through an issue of 25 million of its shares at a price of $0.20 per share pursuant to its initial public offering.

The Lachlan Fold Belt Project comprises tenements including Boree Creek Copper Project (EL9273); the Peep O’Day Gold Project (EL9412); the Manildra and Burdette Gold Projects (EL9172 and EL9148); the Gundagai Ni-Cu-Au-PGE Project (EL9274); the Boree Creek Copper Project (EL6638); and the Mt Unicorn North Project (ELA007373).

Maverick official Sam Smith said: “Maverick is in the fortunate position of having a great portfolio of projects to begin its journey, and having the support of Latin Resources as a major shareholder and with a vested interest at Board level too.”

Maverick, which is due to be listed on the Australian Stock Exchange (ASX) in the coming months, will focus on a portfolio of projects in New South Wales, Western Australia and Canada.

The sale forms part of Latin Resources’ efforts to focus on its Salinas Project in Brazil, Cloud Nine Project in Western Australia, Catamarca Project in Argentina and MT-03 Project in Peru.

In a press statement, Latin Resources said: “This streamlining will also enable Latin Shareholders to participate in the growth of Maverick, with the prospective nature of the Lachlan Fold Belt Project warranting investigation by its own experienced Board and management team.”

Completion of the deal settlement will be subject to finishing of financial, legal and technical due diligence by Maverick on Lotus and the tenements forming the Lachlan Fold Belt Project, to the full satisfaction of Maverick within two months of execution of the agreement.

The deal completion is also subject to Maverick raising capital of at least A$4m ($2.53m) before costs and receipt of conditional approval for admission to the ASX.