The capital raising is excellent news for Li-FT as it’s now likely fully funded with C$27-million for a Yellowknife preliminary economic assessment due by next June and environmental studies for permiting, Cormark Securities mining analyst Shannon Gill said in a note on Friday.
“The strategic investment is another positive indicator for the sector, and hard rock lithium assets in particular,” Gill said.
“Continued M&A in the lithium space supports a potential pricing floor—recalling SQM (NYSE: SQM) and Hancock Prospecting’s May takeover of pre-resource Azure Minerals for a more than 40% premium and Pilbara Minerals’ (ASX: PLS) 67% premium offer to acquire Brazilian developer Latin Resources in August.”
Secrecy trend?
The secret investment could be part of a mini-trend among juniors after undisclosed investors bought the same stakes in Asante Gold (CSE: ASE) in September to expand gold mines in…
