Why the Piedmont Lithium (ASX:PLL) share price is rocketing 15% higher today

This lithium explorer’s shares are back on form on Thursday…

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The Piedmont Lithium Inc (ASX: PLL) share price has returned from its trading halt and is rebounding on Thursday morning.

At the time of writing, the lithium developer’s shares are up almost 15% to 78.5 cents.

Why is the Piedmont Lithium share price rocketing higher?

The catalyst for the rise in the Piedmont Lithium share price today has been the release of a response to an ASX Price Query.

This query is in response to a 20% decline in the Piedmont Lithium share price on Wednesday before being hurried into a trading halt.

That selloff was driven by reports that the company has not applied for a state mining permit or a necessary zoning variance in Gaston County in the United States. The report also suggests that officials may block the project due to environmental concerns.

How did the company respond?

The company acknowledged the media speculation regarding upcoming local zoning and other approvals. And while it wasn’t able to comment directly on the matter, it provided investors with some information which appears to have settled their nerves.

It advised that it had a formal engagement with Gaston County on Tuesday, which it described as a “constructive work session meeting.”

In addition, it has communicated with the Gaston County Board of Commissioners that it plans to submit a mine permit application in August. After which, it plans to complete a definitive feasibility study in September and then an economic impact study in October.

Management also intends to continue engaging with Gaston County and the local community in an open and transparent manner. This will be via town hall and small group meetings over the next few months.

Finally, the company confirmed that it has not received any official notification from the Gaston County or the State of North Carolina regarding its upcoming rezoning and mine permit applications.

The Piedmont Lithium share price has more than doubled in value in 2021.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Piedmont Lithium Inc. 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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