The IGO Ltd (ASX: IGO) share price has come under pressure on Friday and looks set to end the week in the red.
In afternoon trade the gold, lithium, and nickel producer’s shares are down approximately 1% to $7.50.
Despite this, the IGO share price is still up over 60% since the start of December.
Why is the IGO share price under pressure?
Investors have been selling the company’s shares on Friday despite the release of a positive announcement.
That announcement was in relation to the recently announced transaction with Tianqi Lithium and the company’s ongoing strategic review of its 30% ownership of the Tropicana Gold Operation.
In respect to the Tianqi Lithium joint venture, the company’s acquisition of an interest in a global lithium joint venture with Tianqi is progressing well.
According to the release, the company has confirmed that Tianqi Lithium received approval for the transaction from its shareholders on 5 January 2021.
Of the shareholders present and entitled to vote at its shareholder meeting, 99.97% voted in favour of the transaction between Tianqi and IGO. Management believes this is a strong validation of the “win-win” the transaction has created for the shareholders of both companies.
IGO’s Managing Director and CEO, Peter Bradford, commented: “The resounding vote of support which Tianqi has received from its shareholders further validates the value creation from this transaction for the shareholders of both companies.”
“Tianqi and IGO continue to progress the completion workstreams and we will provide further updates to the market as the remaining conditions precedent required to complete the transaction are progressed,” he added.
And in respect to its strategic review of the Tropicana Operation, the company revealed that the review of its 30% interest in the operation is ongoing. It intends to update the market on the outcome when it is appropriate to do so.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.