Why the Charger Metals (ASX: CHR) share price is up 80% this week

It’s been a great week for ASX newby Charger Metals…

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The Charger Metals NL (ASX: CHR) share price is gaining again today, despite no news having been released by the company.

Right now, shares in Charger are 9.72% higher than their previous close, bringing its share price to 79 cents.

Today’s gains included, the Charger share price has gained a massive 80% over the course of this week. It is also 252% higher than it was when it completed its initial public offering (IPO) on the ASX on 9 July.

Let’s take a look at what’s been driving shares in the lithium and critical metals-focused minerals company higher.

Why is Charger’s stock gaining?

The Charger Metals share price has been performing exceptionally well since it released news of its 70% owned Bynoe Lithium Project on Wednesday.

The company announced it has begun fieldwork at the Northern Territory project, which it says is prospective for spodumene.

The Bynoe Lithium Project is also partly owned by Lithium Australia NL (ASX: LIT) and is surrounded by Core Lithium Ltd’s (ASX: CXO) Finnis Lithium Project.

The fieldwork that is now underway will include mapping, geochemistry, and aero-magnetics.

Charger says the project houses 14 identified pegmatite anomalies along a 5-kilometre-long zone.

Additionally, the project’s pegmatites have previously produced cassiterite. They are also prospective for tantalite.

After the fieldwork is finished, the Charger share price might be boosted by more news of the project. The company expects the fieldwork’s findings to refine the project’s lithium targets so Charger can begin a drilling campaign.

Charger Metals’ exploration portfolio also partly owns projects prospective for copper, nickel, platinum group elements, and gold.

Charger Metals share price snapshot

It goes without saying that Charger Metals’ first few weeks on the ASX have been outstanding.

The company’s prospectus had its shares going for 20 cents apiece — they’re now trading for nearly 300% more.

The company has a market capitalisation of around $36 million, with approximately 50 million shares outstanding.

Should you invest $1,000 in Charger Metals right now?

Before you consider Charger Metals, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Charger Metals wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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