Lithium Australia NL (ASX: LIT) shares surged over 12% on Monday after it announced the company has taken a controlling 54% stake in the Electra Lithium project in North Western Mexico. The project is a joint venture between Lithium Australia and a Canadian partner, ALIX.
Shares closed at a high of 17.5 cents, on daily volume of over 4.5 million shares.
A recent drilling program confirmed the existence of a new 2.5km long mineralised zone of lithium clay with commercialisation potential, a find the company described as the project's best discovery yet.
Lithium Australia Managing Director Mr Adrian Griffin described the find as a "significant discovery with near-term potential."
Lithium Australia is a provider of disruptive Lithium extraction technologies. The company has developed strategic alliances and made investments in a number of companies to potentially provide access to a diversified lithium mineral inventory.
