Here’s why the Australian Strategic Materials (ASX:ASM) share price has leapt 12% in a week

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The Australian Strategic Materials Ltd (ASX: ASM) share price is up 5.66% at time of writing to $11.38 per share.

The ASX rare earths and strategic metals explorer is gaining today even as the All Ordinaries Index (ASX: XAO) dips 0.34% into the red.

Factoring in today’s intraday gains, the Australian Strategic Materials share price is up nearly 12% since the closing bell last Wednesday.

What’s driving ASX investor interest?

The Australian Strategic Materials share price has closed higher on 4 of the last 5 days of trading.

The most recent price-sensitive news from the miner was released after market close on Tuesday.

In that release Australian Strategic Materials reported that it had signed a Joint Statement of Cooperation with the Korean Mine Rehabilitation and Resource Corporation (KOMIR).

According to the Joint Statement of Cooperation, Australian Strategic Materials and KOMIR will work together to expand the use of rare earths and critical metals in Korea.

The 2 companies will also cooperate to develop import opportunities to secure the supply of rare earths and critical metals for Korea’s industries. The miner said this includes supplies for strategic stockpiling.

Commenting on the agreement, Australian Strategic Materials’ managing director, David Woodall said:

This builds on the cooperative and collaborative relationship between Korea and ASM, creating further opportunities to engage on the strategic issue of critical minerals and metal supply.

This Joint Statement of Cooperation is another firm sign of Korea’s commitment to securing its supply of critical metals and to working with ASM to deliver an outcome that is beneficial to the Korean supply chain.

Woodall said that Australian Strategic Materials will start producing critical metals at its Korean Metals Plant in 2022.

Australian Strategic Materials share price snapshot

The Australian Strategic Materials share price is up an impressive 132% over the past full year. By comparison the All Ords has gained 10% over that same time.

Over the last month, shares in Australian Strategic Materials have gone the other direction, down 16%.

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