The Arizona Lithium Ltd (ASX: AZL) share price is in the freezer as the market prepares to hear news of merger and acquisition activity.
That $159 million Aussie lithium stock is rumoured to be acquiring Canada's Prairie Lithium – which reportedly comes with an $80 million price tag.
The Arizona Lithium share price entered a trading halt on Monday morning, leaving it frozen at 6.2 cents.
And there it will remain until tomorrow morning unless the company drops more details this afternoon.
Let's take a closer look at what could be going down at the ASX lithium share this week.
Image source: Getty Images
Arizona Lithium shares frozen as ASX waits for M&A news
Arizona Lithium requested its shares be halted on Monday morning amid what it described as a "material acquisition". Sadly, that's all we've got from the horse's mouth so far.
Meanwhile, the Australian Financial Review reports the ASX company is gearing up to buy Prairie Lithium in a part-cash, part-scrip deal worth around $80 million.
The unlisted Canadian company is exploring the nation's Saskatchewan province for lithium brine resources. Arizona Lithium is also exploring lithium in North America. It holds Arizona's Big Sandy project.
Work on Big Sandy's definitive feasibility study kicked off last month. It's expected to be completed within a year.
The potential that production at Prairie Lithium's project could kick off sooner than at Big Sandy is a major factor in the rumoured acquisition, according to the publication.
No doubt all eyes will be on the Arizona Lithium share price when it returns to trade. Particularly as this year has seen it tumble into the red.
The ASX lithium share is currently down 48% year to date. It has also fallen 31% since this time last year.
