The Global Lithium Resources Ltd (ASX: GL1) share price is off to the races today.
The ASX lithium share is currently trading for $1.765 per share, up 18.46% from this morning's opening price of $1.49.
Below we take a look at the offtake agreement that looks to be spurring ASX investor interest.
What offtake agreement was announced?
The Global Lithium share price is soaring after the company reported it's entered into a 10-year spodumene concentrate offtake agreement with Suzhou TA&A Ultra Clean Technology Co.
Suzhou TA&A, the largest Global Lithium shareholder, will also provide technical support services as needed.
As per the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available product from Global Lithium's operations. Suzhou TA&A could increase that quantity by up to an additional 15% in each contract year.
The company said prices for its spodumene concentrate (a lithium ore mineral) will be based on recognised market prices.
Commenting on the agreement boosting the Global Lithium share price today, non-executive chair Warrick Hazeldine said:
As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets.
Having joined our register in December 2021 as a cornerstone investor, Suzhou TA&A has provided tremendous support in not only maintaining their 9.4% stake but also providing invaluable introductions and assistance, which has led us to signing this Strategic Offtake Agreement.
The agreement remains subject to the approval of both company's boards.
Global Lithium share price snapshot
With today's intraday gains factored in, the Global Lithium share price is up 56% year-to-date.
But that's nothing compared to the 538% gains in Global Lithium's shares since the company listed on the ASX on 6 May last year.
To put that into context, the All Ordinaries Index (ASX: XAO) has gained 2% over that same period.
