Major shareholder converts $1.2M in options @ 1.2c

This morning LRS major shareholder Mr Jose Luis Manzano converted $1.2M in options at 1.2c, increasing LRS’s cash balance by $1.2M.

In our previous notes we mentioned that LRS had already managed to secure a financing deal with financier Lind for $2.5M. As part of that financing arrangement any options converted would be used to pay off the $2.5M loan, except for conversions made by LRS’ biggest option holder.

This means that the entirety of the $1.2M will sit in LRS’s bank account, instead of being used to pay down this debt facility.

With LRS confirming high grade lithium mineralisation in the first two holes of its drilling program, these funds can now be used to aggressively drill out the rest of the project area.

The market seems to like this news too with the share price hitting a high of 14.5c, while at the time of writing LRS is up 49%.

What’s next: LRS is now moving its drill rigs back towards its southern target where it will be doing infill and extensional drilling over the ~500m strike zone that was identified with the first 6 holes of this drilling program.

We also expect to see some more assay results and hope to see these confirm more high grade lithium.