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.
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.
Resources Analyst, Markets & Money
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