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Why these small cap ASX shares are on the rise on Tuesday

At lunch the Australian share market is on course to bounce back strongly from yesterday’s decline.

Three shares that are climbing more than most at the small end of the market are listed below. Here’s why they are on the rise on Tuesday:

The AVZ Minerals Ltd (ASX: AVZ) share price is up over 12% to 9.2 cents following the release of its latest drilling results. The lithium-focused mineral exploration company advised that extensional drilling at the Roche Dure pegmatite in the Democratic Republic of the Congo has identified additional high-grade lithium and tin mineralisation which will be included in the company’s revised mineral resource calculation. In addition to these positive drilling results, news that the company’s managing director picked up one million of the company’s shares through a recent on-market trade appears to have given investor sentiment a boost.

The Kidman Resources Ltd (ASX: KDR) share price has continued its positive run and is up a further 3.5% to $1.34. As well as benefiting from improved investor sentiment in the lithium industry, this lithium miner’s shares have been on a strong run thanks to news that it has signed an offtake agreement with Japan’s Mitsui. Management advised that agreed volumes to be supplied by Kidman will gradually increase and equate to less than 15% of Kidman’s share of nameplate production from the refinery of 22.6kt per annum. Pricing is not fixed and will be based on the price that Mitsui achieves from its customers and prevailing international prices.

The Toro Energy Limited (ASX: TOE) share price is over 6% higher at 3.4 cents. This morning the gold miner advised that it has initiated field preparations for its upcoming first phase gold exploration drilling at its wholly-owned Yandal Gold Project in Western Australia. The drilling will take place in an untested area of the world class Yandal Greenstone Belt. This is just 10km to 30km north east of the multi-million ounce Bronzewing Gold Mine. Drilling is expected to commence in the coming days and run until the Christmas period.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.

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