Global Lithium (ASX:GL1) share price hits new 52-week high on acquisition update

Here’s what’s driving the company’s stock today…

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The Global Lithium Resources Ltd (ASX: GL1) share price is surging 6.94% on Friday after the company announced it has completed a new lithium acquisition.

It’s purchased 80% of the Manna lithium project in Western Australia for $33 million.

At the time of writing, the Global Lithium Resources share price is 93 cents. However, that’s lower than it was this morning.

Earlier, the company’s stock was swapping hands for 95 cents apiece. That represents a 9.8% gain and is the highest its been since the company debuted on the ASX in May 2021.

Let’s take a closer look at the latest news from the lithium exploration company.

Global Lithium share price gains on completed acquisition

The Global Lithium Resources share price is in the green on the back of news the company has completed its recently announced acquisition of a majority stake in a second Western Australian lithium project.

The company announced the acquisition on 23 December. Its share price gained 17.4% that same day.

The Manna lithium project is an outcropping pegmatite exploration project. Recent drilling has confirmed a new zone of spodumene-rich pegmatites within its area.

Global Lithium Resources has agreed to pay $33 million to purchase the stake off Breaker Resources NL (ASX: BRB).

Of that, $6.5 million has been paid in cash. Another $6.5 million has been provided by means of new Global Lithium Resources shares.

The other $20 million will be deferred, with $10 million payable upon the announcement of a JORC mineral resource of at least 250,000 tonnes of lithium oxide metal at the project, while the other $10 million is payable when the company produces 100,000 tonnes of lithium oxide from Manna.

Global Lithium Resources chair Warrick Hazeldine commented on the now-finalised acquisition, saying:

Completing the acquisition of the exciting Manna Lithium Project is a fantastic way for the company to close out 2021…

We are looking forward to getting ‘boots on ground’ early in the new year in parallel to commencing our 2022 drilling campaign at the Marble Bar Lithium Project.

Right now, the Global Lithium Resources share price is 233% higher than it was at the start of 2021. It has also gained 50% over the last 30 days.

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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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