Why Pioneer Resources Share Price Jumped 30% Higher

What happened to the Pioneer Resources share price?

Shares of Pioneer Resources [ASX:PIO] went up by 30% at one point in yesterday’s trading, to 2.6 cents. Since then they’ve pulled back slightly, and continued to do so today. But prices remain significantly up from the 2 cent level of a couple days ago.

Why did Pioneer Resources shares do this?

The company entered into an offtake agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of Cabot Corporation [NYSE:CBT], to buy 100% of its caesium ore at the Sinclair Zone Caesium Deposit.

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What now for Pioneer Resources Ltd?

David Crook, Pioneer’s Managing Director, commented on the latest announcement:

‘The Offtake Agreement is a significant milestone for Pioneer and for the Sinclair Mine. We are delighted to have secured an off-taker with the credibility and reputation that Cabot Corporation holds.

Within two years, the Company has discovered and defined Australia’s first caesium deposit, been granted a Mining Lease, completed a robust mining study for the proposed Sinclair Mine, and are advancing the statutory mining approval process.

We now add to that the execution of the Offtake Agreement – a key element of which is the US$4.8 million loan facility which provides sufficient funds to extract the caesium (pollucite) ore from the Sinclair Mine, with delivery as a DSO product to a global caesium specialist.

Indeed, it does sound positive for the company’s shareholders. It’s no surprise why the share price surged 30% on the news. The milestone announcement comes at a great time for Pioneer. It’s presenting at the RIU conference in the Gold Coast on the 21 and 22 June.

Should attendees like what they hear, we could see higher share prices in the near term.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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