PURE ENERGY MINERA COM NPV (OTCKTS:PEMIF) On An Uptrend

PURE ENERGY MINERA COM NPV (OTCMKTS:PEMIF) was first featured in Insider Financial in this article, wherein we noted that the demand for lithium was rising. Additionally, we said that electric car producers, such as Tesla Inc (NASDAQ:TSLA), are the new customers of the lithium industry and are pushing up its revenues. To sum up, the sector is very well positioned for growth in the near future and so is PEMIF. In this new article, we will note new acquisitions made by the company as well as new financing received through private placements. The company is growing, thus the market has been recently pushing up the share price. Have a look at the recent uptrend that occurred at the end of May.SourceRecent DevelopmentsLet's start with the most important news first. One of the most relevant news was released on May 11, 2017. That day, the market got to know that PEMIF had entered into series of agreements with Lithium X Energy Corp, GeoXplor Corp., and Clayton Valley Lithium Inc. to acquire Lithium X’s interest "in 756 unpatented mineral claims covering approximately 15,000 acres" in Clayton Valley, Nevada. Under the agreements, Pure Energy would acquire three subsidiaries by issuing 20,038,182 common shares and 2,022,290 common share purchase warrants to Lithium X. Additionally, Lithium X also agreed to make an investment of $2 million. Furthermore, PEMIF also signed a subscription agreement included in the press release and signed another option agreement with the following conditions:

"will have the option to acquire a 100% interest in 359 unpatented mineral claims covering approximately 10,000 acres (the “Optioned Claims”) in Clayton Valley for cash and share payments as detailed below." Source

Check the the jump on May 11, 2017.SourceWhy did the market celebrate the news? The new contracts mean more than 9,500 acres of mining claims that may turn into a lot of revenues if the company is able to extract mineral at an economic price. The market knows that the company has the expertise to explore and develop the area. Walter Weinig, Pure Energy’s Vice President of Projects, offered the best explanation of the value of the new contract:

“Lithium X has already identified lithium brine on the northern block of claims within gravels that are similar to those encountered at CV-8. This acquisition also gives us potential targets extending west of the newly discovered deep brines at CV-8. We look forward to utilizing our geophysical tools on the new northern and western claim blocks to better define the exploration targets that we can already infer. The phase 1 Preliminary Economic Assessment (PEA) expected in the next few weeks on the CVS Project is just the first step in evaluating the potential economics of these combined properties.” Source

The next important share price spike occurred on May 24, 2017. The volume exchanged crossed the 500,000 shares mark and the share price went from $0.4 to $0.45 in just one day. The most interesting thing was that this move could not be justified by any news. Thus, we believed that something good was about to happen; of course, we were right about it. On May 31, 2017, the company put out that it had closed the previously announced transaction with Lithium X Energy Corp. The company had issued the promised 20,038,182 common shares and Lithium X also completed a $2 million strategic investment in Pure Energy. Furthermore, Pure Energy also completed the initial payment obligations acquired in the option agreement, thus it acquired 359 more unpatented mineral claims covering approximately 10,000 acres. The initial payments included the issuance of 1,250,000 common shares, and a cash payment of US$375,000.Other news put out, which were not as important for the market, but we appreciated, were the private placements received on May 8, 2017 that brought $1,072,000 to the company; the results from depth-specific brine samples from exploratory wells CV-7 and CV-8 on the Clayton Valley South Project that returned positive indications of lithium enriched brine, which was put out on May 9, 2017; and the election of the new director, Mr. S. Scott Shellhaas, Esq, on April 19, 2017, who brings thirty years of diverse experience in the mining industry.ConclusionIn our opinion, PEMIF keeps drawing attention of the market, as it is growing its exploration and development of lithium mines. Every time updates about its lithium projects or new contracts to acquire new projects are put out, the company’s share price is pushed up. The reason is the rising demand for this metal. We believe that the positive news will continue. Hence, be alert on this ticker. We will be updating our subscribers as soon as we know more. For the latest updates on PEMIF, sign up below!Disclosure: We have no position in PEMIF and have not been compensated for this article.