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

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

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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.

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