$8M raised - TWO major conditions to acquisition met
This morning our lithium Investment Pursuit Minerals (ASX: PUR) confirmed that two important conditions to the acquisition of its lithium brine project had been met.
A few weeks back PUR first announced its plans to acquire an advanced lithium asset in Argentina.
This asset sits in South America's 'lithium triangle', a region home to ~50% of the world's lithium production and multi-billion dollar lithium majors like SQM and Albemarle.
At the time of the announcement (14th December 2022), the deal was contingent on an $8M capital raise and the acquisition of the ground that makes up the project - today, PUR confirmed that both these conditions had been met.
After this, Trilogy (the company that PUR is acquiring) holds the first four out of five tenements that it has under option.
The capital raise was done by issuing Trilogy class B notes, all of which convert into PUR shares at 1.2c per share after PUR has officially completed the deal.
These shares are all expected to come to market later this month after PUR shareholders have approved the transaction.
We note that after the deal is completed PUR will have ~2.56BN shares on issue, as a result we think that the share price could "churn" or move sideways until at least the completion of the deal.
We touched on all of the share issuances that are still to come in our PUR launch note.
After today's announcement the remaining conditions for the deal are as follows:
- Due diligence process being completed.
- Shareholder approvals including to issue all of the shares necessary to complete the deal.
- Regulatory and third party approvals.
PUR confirmed today that shareholder approvals will be sought in early February this year.
To see all of the reasons why we Invested in PUR, what we want to see the company achieve this year as well as the key risks to our Investment thesis check out our launch note here - PUR - Now a $31M advanced stage lithium stock
