Why the Kidman Resources Ltd share price rocketed 20% higher today

Much to the delight of its shareholders, the Kidman Resources Ltd (ASX: KDR) share price has gone gangbusters today.

At the time of writing the lithium miner’s shares are up a massive 20% to 58.5 cents.

What happened?

Kidman Resources is currently in court to defend ownership of its lithium rights at its Mt Holland project.

The trial will deal with the issue of whether an agreement existed between Kidman and junior mineral exploration company Marindi Metals Ltd (ASX: MZN).

Kidman has stated that it will vigorously defend contractual claims brought by Marindi Metals, believing that the latter’s action is opportunistic.

Judging by the share price action today, it appears as though the market expects Kidman to come out on top.

Its shares are up 20% and Marindi Metals’ shares are down 20% at the time of writing.

Should you invest?

As I said earlier today, I think Kidman Resources could be a great option in the resources sector if demand for lithium remains strong over the next few years.

Its Earl Grey lithium deposit on Western Australia’s Forrestania Greenstone Belt is a world-class asset and one which could provide it with bumper profit growth over the next few years.

While my first pick in the industry remains Galaxy Resources Limited (ASX: GXY), Kidman wouldn’t be far behind it.

If you love explosive growth shares, but not mining shares, then I think these fast-growing blue-chip shares could be just what you're looking for. I'm tipping them to smash the market over the next few years.

Top 3 ASX Blue Chips To Buy In 2017

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Motley Fool contributor James Mickleboro owns shares in Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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