Why has the MetalsTech (ASX:MTC) share price boosted 41% today?

MetalsTech Ltd’s (ASX: MTC) share price is going bonkers today after the company announced its intention to capitalise on lithium.

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The MetalsTech Ltd (ASX: MTC) share price is going bonkers today after the company announced its intention to capitalise on lithium.

The announcement stated that the mining company has had “strong interest” in its lithium assets and is assessing a commercialisation strategy into the battery metals sector.

After the company’s announcement, the MetalsTech share price shot up 75%, before settling to its current level of 17 cents. Its share price is currently still up 41% on yesterday’s close.

What did MetalsTech announce?

The company announced it is assessing a strategy to advance its high-grade lithium assets in Quebec ahead of recent interest.

MetalsTech has, in the past, received high-grade drilling results from the mine, finding prominent lithium and spodumene.

Not only is lithium predicted to be a massive gainer, but MetalsTech expects a recent spodumene supply shortage to increase over the coming years.

The company reports its Cancet project has high-grade near-surface spodumene mineralisation, making the mine a haven for the in-demand mineral. Further, potentially significant tantalum credits have been identified.

Cancet is MetalsTech’s most advanced lithium asset. The mine boasts excellent power, water and road infrastructure.

MetalsTech stated that by commercialising its Cancet project, it could focus on developing its Sturec Gold Mine. Sturec is the company’s flagship gold mine, located in Slovakia.

Management commentary

MetalsTech chair Russel Moran commented the company is “very fortunate” to have a portfolio of very prospective lithium assets.

Market sentiment towards lithium has surged and we are positioning our company to take advantage of this renewed interest. Cencet in particular is an exceptional high grade near surface lithium exploration opportunity and now is the time to strike.

To deliver maximum shareholder value, we are considering a range of commercialisation strategies designed to enable the Company to focus its efforts on the continued development of the Sturec Gold Mine whilst also allowing the lithium assets to be developed in the most efficient manner.

We have also been approached by several parties interested in acquiring Cencet outright so naturally the Company is reviewing all options in order to achieve the optimum outcome.

Other announcements

In addition to its intentions to commercialise Cencet, MetalsTech announced its newest appointment.

Chris Evans will be the company’s new executive of lithium operations. Evans is an experienced project delivery and operational management expert. He was responsible for building and bringing the Pilgangoora lithium mine and processing facility into operation.

MetalsTech share price snapshot

MetalsTech’s share price has soared recently, with today’s move being only the latest. While this morning’s 41% jump is the company’s largest move in recent times, it boasts a 240% return over the last 12 months. Although, since the beginning of this year the company’s share price has dropped 19%.

On current prices, MetalsTech has a market capitalisation of $17.5 million with approximately 146 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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