How Latitude 66’s Greater Duchess Sale Fuels Its Exploration Ambitions
Latitude 66 Ltd reported a net cash outflow of A$889,000 for Q3 2025 but strengthened its balance sheet by completing the sale of its Greater Duchess JV interest, securing A$2 million in cash and A$4 million in shares.
- Net operating cash outflow of A$889,000 for the quarter
- Completed sale of 17.5% Greater Duchess JV interest for A$2 million cash plus A$4 million in shares
- Repaid short-term unsecured loan of A$750,000 with interest
- Quarter-end cash balance of A$445,000
- Plans to continue exploration in Finland and Western Australia funded by working capital and shares
Quarterly Cash Flow Overview
Latitude 66 Ltd has released its cash flow report for the quarter ending 30 September 2025, revealing a net cash outflow from operating activities of A$889,000. This reflects ongoing expenditure primarily related to exploration and evaluation activities, a typical pattern for a junior mining exploration company in active development phases.
Despite the cash burn, the company maintained a cash balance of A$445,000 at quarter-end, supported by strategic financing and asset management moves.
Strategic Sale and Loan Repayment
A significant highlight of the quarter was the completion of the sale of Latitude 66's 17.5% interest in the Greater Duchess Joint Venture (JV). The transaction, finalized on 16 October 2025, brought in A$2 million in cash and A$4 million worth of unrestricted shares in Carnaby Resources Ltd. This deal not only provided immediate liquidity but also positioned the company with a valuable equity stake in another resource player.
To facilitate this transaction, Latitude 66 secured a short-term unsecured loan of A$750,000 from Argonaut Partners Pty Ltd in July 2025. The loan, which carried a 1% monthly interest rate, was fully repaid upon completion of the JV interest sale, including interest payments totaling A$3,750.
Funding Outlook and Operational Continuity
Latitude 66's management confirmed that the proceeds from the Greater Duchess JV sale, combined with existing working capital, provide sufficient near-term funding to continue advancing exploration projects in Finland and Western Australia. The company emphasized that future exploration activities will be targeted and cost-effective, ensuring commitments are met without the need for immediate dilution.
The unrestricted nature of the Carnaby Resources shares offers Latitude 66 additional financial flexibility, allowing for potential monetization to support operations as required.
Looking Ahead
While the company faces the typical cash flow challenges of exploration entities, Latitude 66's recent asset sale and prudent financial management have strengthened its position. Investors will be watching closely for updates on exploration results and the performance of the Carnaby Resources shares, which could materially impact the company's financial health and strategic options.
Bottom Line?
Latitude 66’s strategic asset sale and disciplined funding approach set the stage for continued exploration progress without immediate capital raising.
Questions in the middle?
- How will the market value of Carnaby Resources shares impact Latitude 66’s future funding?
- What are the next exploration milestones for Latitude 66’s Finnish and Western Australian assets?
- Could Latitude 66 pursue further asset sales or capital raises if exploration costs rise?
