The Latin Resources Ltd (ASX: LRS) share price isn't going anywhere on Tuesday.
That's because this morning the lithium developer requested that its shares be placed into a trading halt.
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Why is the Latin Resources share price frozen?
The good news is that the company hasn't requested a trading halt because it wants to raise funds again.
With $46 million cash in the bank as of 30 June, its near-term requirements appear to be covered.
So why is the Latin Resources share price out of action today? Let's take a look at its request.
[Latin Resources] requests an immediate trading halt over the Company's securities today, 26th September 2023 pending the release of an announcement in relation to its preliminary economic assessment (PEA) for the Colina Project. The Company requests the trading halt until the earlier of the Company releasing the announcement, or commencement of trading on Thursday 28th September 2023. The Directors of Latin Resources Limited are not aware of any reason why a trading halt should not be granted and there is no other information necessary to inform the market about the trading halt.
What is the Colina Project and a PEA?
The Colina Project refers to a deposit at the company's 100% owned flagship Salinas Lithium Project in the pro-mining district of Minas Gerais, Brazil.
As per its most recent update, the company has defined a total mineral resource estimate at the Colina lithium deposit of 45.2Mt at 1.32% Li2O.
In respect to its preliminary economic assessment or PEA, this is also known as a scoping study and is an analysis that determines the potential viability of a mine.
Clearly, a big decision is in the process of being made. So, stay tuned for that on Thursday.
The Latin Resources share price is up 189% over the last 12 months.
