The Core Lithium Ltd (ASX: CXO) share price is in the green today after the company acquired a new lithium project.
At the time of writing, the company's shares are swapping hands at $1.35 – a 4.26% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.61% today.
Let's take a look at what's happening at Core Lithium.
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New Lithium project
Core Lithium advised shareholders it has entered into a binding agreement with Newmont Exploration Pty Ltd. Under the agreement, Core will acquire the Shoobridge project for $250,000 plus a 2% royalty.
Newmont is a subsidiary of United States-based Newmont Corporation (NYSE: NEM). For context, Newmont Corporation is the world's largest gold mining company.
The project is located about 80km to the south of Core Lithium's Finniss Lithium Project in the Northern Territory.
Shoobridge pegmatites have been explored for tin and tantalum in the past, however, Core Lithium will be the first company to explore the site for lithium.
Core managing director Stephen Biggins commented on the news:
While we are firmly focussed on developing the Finniss Lithium Project, we are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities.
The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding lithium production from the project as lithium prices continue to rise.
The takeover is subject to ministerial consent under the Northern Territory Mineral Titles Act 2010.
Core Lithium share price snapshot
The Core Lithium share price has soared 417% in the past year while it has surged 128% year to date.
Additionally, in the past month the company's shares have jumped 39%. However, they have slid 12% in the past week.
For perspective, the ASX 200 has returned nearly 8% in the past year.
Core Lithium has a market capitalisation of $2.21 billion based on its current share price.
