PUR successfully completes a $3M placement
Our lithium Investment Pursuit Minerals (ASX: PUR) just raised $3M via a placement at 1.2c per share.
The shares from the placement are expected to be issued on the 26th of July.
PUR’s lithium project sits inside South America’s ‘lithium triangle’.
The lithium triangle is a region home to ~50% of the world's lithium production and multi-billion dollar lithium majors like SQM and Albemarle.
PUR’s project sits inside a Salar (salt lake) which already has a defined 2.1mt lithium carbonate equivalent resource estimate.
The Salar’s resource is predominantly based off drill results down to depths of ~150M.
PUR’s strategy is to drill down to depths >400m and define its share of the Salar’s resource.
Today’s capital raise is to fund PUR’s initial drilling programs which it hopes leads to a maiden JORC resource for PUR.
Part of the funds are also being used to finalise PUR’s acquisition of the lithium pilot plant that was announced a few months back.
So over the next 3-6 months, we will be watching for newsflow on two fronts:
- Exploration - target generation work and then drilling in Q3 2023.
- Production testing - PUR to produce battery-grade lithium carbonate from its pilot processing plant.
Both form the basis for our PUR Big Bet which is as follows:
Our PUR ‘Big Bet’:
“PUR increases the size and scale of its lithium project to a level that warrants putting it into production. We are hoping this re-rates the company to a market cap of >$1bn (similar to what peer company Argosy achieved)”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our PUR Investment memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.
What’s next for PUR:
