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Here’s why the Core Lithium (ASX:CXO) share price stormed 19% higher today

asx share price increase represented by golden dollar sign rocketing out from white domes
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The Core Lithium Ltd (ASX: CXO) share price has been a very strong performer on Wednesday morning.

In early trade the emerging lithium miner’s shares jumped as much as 19% higher to 25 cents.

The Core Lithium share price has since dropped back a touch but is still up 9% to 23 cents at the time of writing.

This latest gain means its shares are now up an incredible 360% over the last couple of months.

Why is the Core Lithium share price jumping higher?

Investors have been buying the company’s shares this morning following the release of a positive announcement.

According to the release, Core Lithium has been granted a mineral lease for the high-grade BP33 Lithium Deposit. This is a key component of the company’s 100%-owned Finniss Lithium Project located near Darwin in the Northern Territory.

Management notes the 25-year lease for BP33 follows the receipt of the first ever mineral lease that the Northern Territory Government had awarded for a lithium project. That was for Core Lithium’s Grants Deposit, which is another key component of the Finniss Lithium Project.

Core Lithium’s Managing Director, Stephen Biggins, believes this approval is both well-timed and a significant milestone in the company’s history.

He commented: “This additional mining lease approval from the Northern Territory Government is well timed as Core continues to advance the Finniss Lithium Project towards commencing construction and as we aim to further expand resources, life of mine and production capacity in 2021.”

“It is a further encouragement that the NT Government understands the important role that Finniss will play in the future of the lithium sector and as we continue to see signs of global improvement in this industry, we are optimistic of our near-term plans for Australia’s next lithium mine,” he concluded.

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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. 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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