Here's why the Core Lithium share price is in the green on Monday

Shareholders are bidding up Core Lithium shares on acquisition news out of the company today.

| More on:
A little boy climbs in the green tree eating an apple to its core.

Image source: Getty Images

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

Key points

  • The Core Lithium share price is in the green 
  • The company's share price has soared more than 400% in a year 
  • Core Lithium has entered an agreement to acquire a new lithium project 

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.

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.

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 Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »