The Pepinnini Minerals Ltd (ASX: PNN) share price has jumped out of the starting blocks on Friday and is now trading at 61 cents. This is 49% higher than its closing price yesterday.
In earlier trading, it hit an intraday high of 65 cents, up 58% and just 3 cents below its 52-week high.
The impressive surge in the Pepinnini share price has been spurred by the announcement of a new agreement today.
Here’s what’s happening.
What did Pepinnini Minerals announce?
The company advised that it has signed an agreement in Argentina with Litho Minera SA. This is a subsidiary of one of the world’s leading lithium manufacturers, Gangfeng Lithium (HKG: 1772).
Pepinnini entered into the agreement via its own subsidiary, Pepinnini SA for a pipeline to carry lithium brine from Ganfeng’s Mariana Project in Argentina.
This pipeline will basically run from Gangfeng’s project to Pepinnini’s Santa Ines project to the northwest.
It will be a “more environmentally friendly option than road for brine transport”, according to the company.
The pair will also carry out an induced polarisation (IP) geophysical survey on 11 kilometres of Santa Ines. Both parties will cover the survey’s costs.
Pepinnini said the survey will be a useful interpretive tool for the pair. It will begin in October and run for 12 days.
According to a statement released by Pepinnini:
For Pepinnini it will be an exploration tool for copper-gold mineralisation targets for drill testing while it will give Ganfeng reassurance that the pipeline trace will not require relocation in the event of a mineral discovery.
Investors have bought on the news and are continuing to drive the Pepennini share price higher this afternoon.
Pepinnini share price snapshot
It’s been a rocky road for the Pepinnini share price, although it has climbed 74% since 1 January.
Over the past month alone, Pepinnini shares have gained 96% and show no sign of slowing down today.
Study results out of its lithium brine project in Chile have propelled the Pepinnini share price higher this week, too.
The share price is up 408% over 12 months. This compares to about 25% for the S&P/ASX 200 Index (ASX: XJO).