Why are Latin Resources and these ASX lithium shares in trading halts today?

These lithium shares are out of action on Friday. But why?

| More on:
A person holds a stop sign in front of their head

Images source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As Liontown Resources Ltd (ASX: LTR) shares return from a trading halt this morning following the completion of the institutional component of its capital raising, Latin Resources Ltd (ASX: LRS) and two other ASX lithium shares are starting their own halts.

Why are Latin Resources shares halted?

This morning, Latin Resources requested a trading halt so that it could undertake a capital raising of its own.

The request from the Brazil-focused lithium explorer states:

The Company requests the trading halt until the earlier of the Company releasing the announcement, or commencement of trading on Tuesday, 24th October 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.

It appears that the company wants to lock in funds now for the development of the Salinas Lithium Project just in case any further weakness in the lithium industry drags its shares lower.

Latin Resources shares are down 29% since the start of September despite some encouraging drilling results from the project.

As things stand, it is unclear how much the company is seeking to raise and at what price.

Which other ASX lithium shares are halted?

Joining Latin Resources shares in a trading halt are Atlantic Lithium Ltd (ASX: A11) and Calidus Resources Ltd (ASX: CAI).

Atlantic Lithium has asked for its shares to be offline until Tuesday so that it can prepare "the release of an announcement to the market regarding the permitting of the Ewoyaa Lithium Project."

This appears to be good news for shareholders, thankfully. News reports in Ghana, where the mine is located, claim that the government has signed its first-ever lithium lease agreement with Atlantic Lithium for mining at Ewoyaa.

In respect to Calidus Resources, it has requested a halt until Tuesday "pending the release of an announcement in relation to a significant transaction in relation to Pirra Lithium Pty Ltd."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

More on Share Market News

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A miner stands in front oh an excavator at a mine site

3 reasons ASX uranium stocks can keep charging higher into 2025

I think the recent sell-down in ASX uranium stocks has been overdone. Here’s why.

Read more »

A businessman sits on a chair looking at a pile of chairs stacked up to the ceiling of a white empty room.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Consumer discretionary shares led the ASX 200 market sectors last week with a 0.36% gain.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.

3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

Vinay Ranjan from Airlie Funds Management says we should ignore market noise and buy quality stocks.

Read more »

A woman uses her phone to pay at the counter, with a queue of more customers behind.
Share Market News

Where Aussies are spending their money, and the ASX shares that could benefit

Households are still opening their wallets on certain categories.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Share Market News

With nothing in my savings account, I'd use Warren Buffett's golden rule to build wealth

Here's how you could grow your wealth by following the Oracle of Omaha's golden rule.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 25% to ~50%

Big returns could await buyers of these shares according to analysts.

Read more »

A businessman hugs his computer and smiles.

2 outstanding ASX 200 shares to buy and hold for a decade

I think these ASX 200 shares will continue to reward investors for years to come.

Read more »