- Arizona Lithium (AZL) calls a two-day trading halt as it gears up to tap investors for some fresh capital
- Shares are slated to resume trading on Tuesday, November 2, when AZL announces how much it plans to raise and how it will go about securing the funding
- The financing follows a recent unexplained share price run, which saw AZL rise from 4 cents to 9 cents in just over two weeks
- When hit with a speeding ticket by the ASX and asked to explain the price rise, Arizona Lithium said it had no idea what could have caused the increase in share price
- Shares in Arizona Lithium last traded for 8.9 cents each on Thursday, October 28
Junior miner Arizona Lithium (AZL) has called a two-day trading halt as it prepares to tap investors for some fresh capital.
The company is yet to reveal the details of the financing, including how much it plans to raise and how exactly it will go about securing the funds.
At this stage, shares will be released from their trading halt when further details are announced on Tuesday, November 2.
News of the financing follows a recent unexplained share price run in the second half of October.
Shares rocketed more than 120 per cent from October 13 to October 28, rising from 4 cents each to 9 cents each despite AZL having released no price-sensitive news over this period.
When hit with a speeding ticket by the ASX and asked to explain the trading activity, Arizona Lithium said it had no idea what could have caused the increase in share price.
However, the company flagged record highs in lithium carbonite prices in China as a potential driver of the price rise — especially in light of the recently-completed spin-out of AZL’s gold and copper assets.
Arizona Lithium, previously known as Hawkstone Mining, spun out its US gold and copper assets into a separate ASX-listed company dubbed Diablo Resources so that it could focus on its Big Sandy Lithium Project in Arizona.
The name change to Arizona Lithium accompanied the spin-out to reflect the business’ streamlined focus on lithium.
Prior to the spin-out, AZL ended the June quarter with just under $5 million in the bank after going cashflow-negative over the June quarter by $681,000. AZL is yet to announce its financial figures for the September quarter.
Shares in Arizona Lithium last traded for 8.9 cents each on Thursday, October 28. The company has a $155 million market cap.