The Wildcat Resources Ltd (ASX: WC8) share price is trading at 81 cents on Friday, down 19.8% from its 15-year high of $1.01 reached last Monday.
Is this an opportunity to buy the dip?
Let's review what's been happening with the Wildcat Resources share price of late.
Image source: Getty Images
Wild ride for Wildcat share price in November
Wildcat Resources hit its 15-year share price high on 6 November after releasing exciting new assay results from the Tabba Tabba lithium-tantalum project in the Pilbara region of Western Australia.
According to the release, management reckons the assays from the Leia Pegmatite confirm that the lithium junior is "uncovering a tier-1 lithium deposit at Tabba Tabba".
The Wildcat Resources share price initially rocketed 21% on that little nugget of news.
A few days before, Wildcat stock had surged 13.5% on news that ASX 200 mining giant Mineral Resources Ltd (ASX: MIN) had amassed a 19.85% stake.
Wildcat bought Tabba Tabba from Global Advance Metals in May, and the deal settled on 12 October. That's the day MinRes started buying, and a series of purchases followed to reach 19.85% on 31 October.
MinRes owns and operates the Wodgina hard rock lithium mine in a joint venture partnership with US lithium giant Albemarle Corporation (NYSE: ALB). Wodgina is 87km away from Tabba Tabba.
Why has a share price dip occurred?
Well, as my Fool colleague James reports, there are 100 million reasons for the Wildcat share price dip.
Last Friday, Wildcat announced the completion of a major capital raise.
The company received firm commitments from institutional and sophisticated investors to raise $100 million at an offer price of 76 cents per share.
As part of the raising, the company issued 131,578,948 new fully paid ordinary shares today.
The issuance of more shares, coupled with the discounted offer price, is why the Wildcat Resources share price is 20% off its 15-year high today.
The funds will be used for exploration, drilling, resource evaluation, and business development at Tabba Tabba.
Wildcat released a new investor presentation on Tabba Tabba yesterday.
What a year: Wildcat Resources share price up 3,910% in 2023
Wildcat shares have skyrocketed on the back of all the promising drilling results coming out of Tabba Tabba.
Wildcat Resources stock started the year at just two cents.
The lithium explorer now has a market capitalisation of $833 million.
