The Latin Resources Ltd (ASX: LRS) share price won't be going anywhere on Tuesday.
This comes as the company requested that its shares be placed in a trading halt.
As such, the lithium explorer's shares are frozen at 18.5 cents apiece.
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Why is the Latin Resources share price halted?
Prior to the market opening, management requested that the Latin Resources share price be halted while it prepares an announcement.
According to the release, the company is planning to make an announcement in relation to a capital raising.
It's worth noting that Latin Resources shares have powered ahead to astonishing levels. In a month, its shares are up 340%. It appears that the company is looking to take advantage of the share price acceleration to fund its lithium projects.
Latin Resources has requested that the trading halt remain in place until Thursday 14 April or following the release of the announcement, whichever comes first.
More on Latin Resources and lithium
Australian-based mineral exploration company, Latin Resources has projects in both Australia and South America.
In Australia, Latin Resources operates the Cloud Nine Halloysite-Kaolin deposit located 300 kilometres east of Perth in Western Australia.
On the other hand, the company is developing two lithium projects situated in Brazil and the other in Argentina.
Almost all everyday technology such as mobile phones, laptops, cameras, toys, and clocks are widely used from lithium.
However, one of the biggest markets for the battery making ingredient is electric vehicles. The reason for this is the huge difference in battery sizes. As an example, a Tesla car is fuelled by up to 90 kWh of lithium-ion compared to 5-6 kWh for an iPhone 11 that would last an entire year.
Lithium is mainly sourced from either spodumene or brine. Australia is home to the majority of the hard rock (spodumene) mines, while brine production is concentrated mainly in South America, particularly Chile and Argentina.
In contrast, it's about 3-5 years for spodumene mines to go into production, whereas brine can take up to 7 years.
With the lithium revolution continuing to keep pace, Latin Resources is looking to get in on the action.
About the Latin Resources share price
Over the past 12 months, Latin Resources shares have surged by 260% following strong investor hype in the lithium space.
Although, when looking since the start of the year, its shares have recorded a wild uptrend, gaining more than 530%.
Based on valuation grounds, Latin Resources has a market capitalisation of roughly $305.1 million, with approximately 1.65 billion shares outstanding.
