Why are Firefinch shares halted today?
The post Why is the Firefinch (ASX:FFX) share price halted on Friday? appeared first on The Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO) is having a pretty decent start to the week’s last day of trading today. At the time of writing, the ASX 200 is up a healthy 0.44% to 7,622 points after making yet another new intraday all-time high of 7,631.1 points earlier this morning. However, one ASX share isn’t joining the party today. That would be the Firefinch Ltd (ASX: FFX) share price.
Firefinch shares are currently priced for 57 cents a share. And that’s where they’ll be staying, at least for the remainder of the week. That’s because just after market open this morning, Firefinch put out a market announcement.
This ASX release told investors that Firefinch has requested that its shares be placed in a trading halt. For how long? According to the company “until the earlier of the commencement of normal trading on Tuesday, 17 August 2021 or when the announcement is released to the market”.
Here’s some of what the ASX release stated this morning:
The Company seeks the trading halt pending an announcement in relation to the joint venture between the Company and a wholly owned subsidiary of Jiangxi Ganfeng Lithium Co. Ltd for the development of the Goulamina Lithium Project.
And that’s all we know for now folks!
About the Firefinch share price
Firefinch is an ASX gold and lithium miner with several assets located in the African country of Mali. This includes an 80% interest in the Morila Gold Mine. Back in June, Firefinch also announced a joint venture with the Chinese lithium and chemicals company Jiangxi Ganfeng Lithium Co Ltd.
As my Fool colleague Brooke covered at the time, these two companies announced that they plan to jointly develop and run Firefinch’s Goulamina Lithium Project in Mali. Under the arrangement, Ganfeng is scheduled to acquire a 50% stake in the joint venture company Mali Lithium BV.
Firefinch has estimated that the Goulamina project will have a mine life of 23 years. Ganfeng has agreed to purchase any product that the mine produces under the agreement as well. Firefinch has also previously gazetted that it plans to spin off the Goulamina project on the ASX at some point, which will be named ‘Lithium Co’.
So Firefinch has told us that its upcoming announcement is related to this joint venture. But we shall have to wait and see what the final details are.
At the current Firefinch share price, the company has a market capitalisation of $518.87 million. In 2021 so far, Firefinch sahres are up an impressive 200% year to date.
Should you invest $1,000 in Firefinch right now?
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Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.