Does the fulfillment of the financing condition precedent accelerate the closing timeline and increase the probability of the proposed acquisition?

Answer to the question

Yes. The $3.5 million private‑placement by Cura Exploration satisfies the financing condition precedent in the June 13 2025 LOI, removing the most material contractual hurdle. In practice, once a condition precedent is cleared the parties can move from “letter‑of‑intent” to a definitive agreement and set a closing date that is typically weeks rather than months later. Consequently, the probability that the Leviathan‑Cura acquisition will close has risen from a speculative “subject to financing” risk to a near‑certain event, assuming no other regulatory or shareholder obstacles emerge.

Trading implications

Fundamentals: The deal gives Leviathan exposure to Cura’s Botswana assets (copper‑gold‑zinc) and adds roughly $3.5 m of cash to Cura’s balance sheet, strengthening the combined entity’s near‑term liquidity and resource base. Analysts will likely upgrade Leviathan’s valuation multiples (EV/Reserves, P/NAV) as the transaction de‑risks the acquisition premium. Expect a modest lift in Leviathan’s share price on the TSXV and OTC markets, especially if the market had already priced in a 30‑40 % chance of closure; the new information could re‑price that to 70‑80 %.

Technical: Leviathan (LVX) has been trading in a tight 5‑day range (≈ $0.11–$0.13) since the LOI announcement. A breakout above the upper range (~$0.13) on volume would confirm the bullish catalyst and could trigger short‑covering and momentum buying. Conversely, a failure to break higher may indicate lingering concerns (e.g., shareholder approvals) and keep the stock muted. For Cura (if still listed), the news is neutral to positive; its stock may see a modest rally as the financing eliminates dilution concerns.

Actionable strategy

- Long Leviathan: Initiate a small position (e.g., 1–2 % of portfolio) at current levels with a stop just below the lower trend line (~$0.105). Target the next resistance around $0.15, which reflects a ~15‑20 % upside if the deal closes by Q4 2025.

- Option play: Consider buying out‑of‑the‑money calls (e.g., $0.14 strike, 3‑month expiry) to leverage the upside while limiting downside to the premium paid.

- Risk management: Monitor for any regulatory or shareholder vote updates; a delay announcement would invalidate the “accelerated closing” assumption and could trigger a short‑term pullback. Keep exposure modest until the definitive agreement is filed.