Lithium acquisition approved by shareholders
Yesterday our lithium Investment Pursuit Minerals (ASX: PUR) had shareholders approve the acquisition of its lithium brine project in Argentina.
PUR’s project 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.
With shareholder approvals out of the way, the remaining conditions for the deal are as follows:
- Due diligence process being completed.
- Regulatory and third-party approvals.
PUR expects the acquisition to be settled and the shares for the second tranche of the capital raising to be issued by “late February/early March 2023”.
We note that after the deal is completed PUR will have ~2.56BN shares on issue.
With the current share price trading at 2.4c per share (well above the 1.2c per share capital raising price), 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.
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
