Latitude 66 (ASX:LAT) shares jumped almost 8% on Monday after the company confirmed completion of its non-core Piastri Project sale to Capricorn Metals Limited (ASX:CMM) — a transaction that has already delivered a windfall gain thanks to a rising Capricorn Metals share price.

How the Deal Adds Up

  • Agreed consideration: A$1.5 million plus GST, paid via 102,172 fully paid Capricorn Metals shares.
  • Based on Capricorn Metals' 21 August closing price of A$17.50, those shares are now worth approximately A$1.79 million — about A$290,000 above the original deal value.
  • Combined with a prior Royalty portfolio sale, Latitude 66 has generated approximately A$5.19 million in non-dilutive liquidity.
  • No new Latitude 66 shares were issued to fund the transaction, preserving existing Shareholder equity.

Where the Cash Is Headed

Latitude 66 says the freed-up Capital will be directed toward its two core growth areas: the Kuusamo Schist Belt (KSB) Project in Finland — its flagship asset, hosting a 650,000-ounce gold and 5,840-tonne cobalt resource — and the Laverton Gold Project in Western Australia, which includes the Red Dog and Tin Dog targets with granted Mining leases and established infrastructure access.

The move reflects a broader portfolio strategy: monetising non-core Assets to self-fund exploration rather than raising fresh equity, while retaining upside exposure through its new Capricorn Metals shareholding.

What The Numbers Are Saying

  • No changes reported to revenue, NPAT or dividends from this transaction.
  • Total non-dilutive Liquidity raised (Piastri + royalty sale): ~A$5.19 million.
  • Mark-to-market gain on consideration shares: ~A$290,000 since deal signing.

The Bottom Line

Today's rally reflects investor approval of a capital-efficient way to fund growth — turning a non-core asset into cash and an Equity stake that has already appreciated. The key going forward is how effectively Latitude 66 deploys this liquidity across its Finland and Western Australia projects.