Latin Resources (ASX:LRS) Gains Up to 54% on Friday, Here’s Why

Shares of materials company Latin Resources Limited (ASX: LRS) closed today’s session up 54% after the formidable bull run, hitting a new 52-week high of AU$0.16 at the day’s high. The share price surge was triggered by the company’s largest shareholder’s acquisition of fully paid ordinary shares for income of A$1.2 million. the Stock closed the session at AU$0.145 per share on Friday.

The sectors concluded with a mixed bag today. Along with the S&P/ASX 200, 7 of the 11 sectors ended the day lower. At the end of today’s session, the best performing sector was Materials, which finished up 1.33%. The materials of the S&P/ASX 200 [XMJ] closed today up 1.33% at 18,976.60 on ASX. The index gained 7% last month.

Among its rivals in the materials sector, LRS had the strongest and most remarkable performance today. Nova Minerals Limited (ASX:NVA) and Navarre Minerals Limited (ASX:NML), two of LRS’ peers, ended today’s session with a 2% gain and a 3% loss, respectively.

The materials sector grew by 19% in one year. LRS grew 190% in one year, following in the footsteps of the materials sector. The company not only maintained its strong mid-year streak, but also had a great bull run with solid growth, growing 262% in six months and 383% year-to-date ( YTD). The record bull market has persisted in recent months, rising 263% in one month.

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About companies

Latin Resources Limited is a mining exploration company with projects in South America and Australia. The company is exploring commodity mining projects that will help the world reach its goal of net zero emissions.

Integra is a global investment firm with a diversified portfolio in over 10 countries. Integra has produced over A$16.5 billion worth of companies and projects with investors and private institutions.

Reason behind the bull run

Latin Resources (ASX:LRS)

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Latin Resources Limited has announced that Integra Capital founder Jose Luis Manzano has exercised 100,200,000 LRSOC options to purchase 100,200,000 fully paid ordinary shares for A$1,202,400. Currently, Manzano owns a 13.4% stake in Latin shares and remains the company’s largest shareholder.

The options were exercised just months before their expiration in December 2022. This indicates Manzano’s overwhelming support for a recent substantial discovery of lithium spodumene at the Salinas Lithium project in the Brazilian mining state of Minas Gerais.

According to the company, the proceeds from the exercise of these options would not be used to repay the Lind facility, as referred to in the option funding agreement notified to the market on February 28, 2022. Instead, it would be used to enhance program work at the Salinas Lithium Project.

In addition, the aforementioned option exercises will bring the total number of LRSOC options exercised over 12 months from March 22, 2021 to March 25, 2022 to 223,000,876 options, earning the company A$2.676 million.

road ahead

According to the company, it has a positive, long-term relationship with Integra Capital, and they look forward to developing a strong relationship with Integra and its chairman, Manzano.

Good reading: What caused Latin Resources (ASX:LRS) stock price to hit a 52-week high?