The Azure Minerals Ltd (ASX: AZS) share price won't be going anywhere today.
That's because prior to the market open, the high-flying lithium explorer requested a trading halt until the commencement of trade on Wednesday.
Why is the Azure Minerals share price halted?
With the Azure Minerals share price up almost 1,000% since the start of the year, you would be forgiven for presuming that this trading halt is because the company wants to launch a capital raising.
After all, it is often what happens when a pre-revenue company's shares rocket higher in a short period of time. And given that Azure Minerals had 3.19 quarters' worth of funding available at the end of June, this would be understandable.
However, that's not the reason.
What's happening?
The release reveals that management has requested the trading halt so it can respond to media speculation. It said:
Azure is seeking a trading halt pending a response to recent media speculation involving the Company.
While the company hasn't explained which speculation it is referring to, it seems likely to be a report in The Australian that suggests that Azure Minerals could be a takeover target of lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) or Wesfarmers Ltd (ASX: WES).
The report suggests that SQM was looking at making a $2.30 per share offer before its shares stormed beyond this level. Whereas Wesfarmers is believed to still be in the running. Though, it has not commented on the rumour.
Investors will need to stay tuned and wait for Azure Minerals to release its announcement relating to the rumours.
