The Description read:
You are bidding on a Lath-wood Art Sailing ship. Comes new in original package. Arrange, glue and paint to make a beutiful art piece. Kit is for a Sailing ship that measures 12x16 inches. Dated 1979 Mcneill Needlework & crafts, Inc. E-bay Item number: 2894115801 sold by e-bay seller flipinout of North Carolina in February 2004

The late 70's is when Degroot LathArt was mass produced using a patented die-cut sequence. Keep in mind that this was the late 1970's, when computer cutting, either via lazer or CNC was an expensive proposition and Chinese manufacturing was not well worked out. These Lath Art Kits were probably die-cut as well.
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United States Patent 4,061,514 - The Degroot LathArt Patent
Strugatz December 6, 1977
Process for mass-producing works of art made from wooden strips
Abstract
Works of art made from strips of material, preferably wooden lath strips, are mass-produced by sawing the lath strips to the desired size of the art work, painting or staining the sawed pieces to the desired color or shade, dye-stamping the stained or cut strips to their final shape, assembling the shaped pieces into the final design or picture of the art work, and fixing, by nailing, stapling, or glueing, the assembled pieces to a suitable backing. Preferably, the same strips of material are used to form the frame and side supports for the final product.
Inventors: Strugatz; Arthur (Northport, NY)
Appl. No.: 05/760,086
Filed: January 17, 1977 __________________________________________________________________
Anyone who can help fill in any more details about this kit please post a comment, and thank you Paul for bringing it to my attention.