Here's why the Lithium Energy (ASX:LEL) share price is tumbling 6% today

Covid-19 travel restrictions have slowed down approval on this project.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Lithium Energy Ltd (ASX: LEL) share price is plunging today after a company update on its operations in Argentina.

Shares in the exploration company are trading hands at 70 cents on Monday afternoon, down 6%.

Let's take a look at what may be impacting the Lithium Energy share price today.

woman and two men in hardhats talking at mine site

Image source: Getty Images

What did the company announce?

In today's release, Lithium Energy advised that COVID-19 travel restrictions were delaying public consultation at its Solaroz Lithium Project in Argentina.

The company advised the market back in September that approval for the project would be imminent.

Despite obtaining regulatory approval on the technical aspects of the exploration, the company wants to ensure the public consultation is complete before drilling for lithium.

The mining director has initiated follow-up public meetings with the two relevant community groups. This is now possible after COVID-19 restrictions were recently relaxed in the Argentinian province of Jujuy.

In consultation meetings in late July, the company said there were no significant community or landowner objections to the exploration.

Lithium Energy mines for battery minerals at both the Argentina mine and the Burke Graphite Project in Queensland.

Management comment

In a statement authorised by the executive chairman and director, the company said:

Whilst this has caused a delay to the planned exploration activities, Lithium Energy is fully supportive of the request made by the mining director.

Lithium Energy anticipates that such engagement will foster more positive long term community engagement and collaboration moving forward.

Lithium Energy said it would hold these community meetings in the new year and was not expecting any objection to the exploration.

The company is currently engaging with local geophysics and drilling contractors amid the pending approval and hopes to start exploring by early February 2022.

Share price snapshot

The Lithium Energy share price has surged a mammoth 250% in the past 12 months.

Despite this, the company's shares have dropped by 21% in the past month and 4% in the past week.

The lithium miner has a market capitalisation of nearly $32 million based on the current share price.

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.

More on Share Fallers

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.
Share Fallers

The worst 4 ASX 200 stocks to buy and hold in April unmasked

Investors sent these four ASX 200 stocks tumbling 21% to 44% in April.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Share Fallers

Why these top ASX shares sank 10%+ in April

It was a tough month for these popular shares.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why EQ Resources, Inghams, ResMed, and Skycity shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today

These shares are having a poor session on Thursday. What's going on?

Read more »

A man in a business suit hangs in mid air facing the floor as he plunges to the ground.
Share Fallers

Why Appen shares just crashed 28% despite a return to growth

Appen shares tank 28% as the quarterly update rattles investors.

Read more »

An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.
Share Fallers

Why Catalyst Metals, G8 Education, Meteoric Resources, and Westgold shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

ASX share investor sitting with a laptop on a desk, pondering something.
Share Fallers

CSL shares crash to a 9-year low. Is it time to sell off my shares?

What's next for the beaten-down ASX biotech stock?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Beach Energy, Domino's, Origin Energy, and Pantoro Gold shares are dropping today

Why are these shares under pressure? Let's find out.

Read more »