Dart Mining NL (ASX: DTM) shares are surging heading this afternoon.
The ASX lithium share closed yesterday at 6.2 cents each and hit an intraday high of 8.4 cents late morning, a 35% gain. At the time of writing, the Dart Mining share price has settled at 7.3 cents apiece, a still healthy rise of 17.74%.
Here's what's stoking investor interest in the microcap lithium stock today.
Why is this tiny ASX lithium share surging today?
The Dart Mining share price is rocketing after the company reported it's entered into an earn-in agreement for its Dorchap Lithium Project with Sociedad Química y Minera de Chile (NYSE: SQM). The agreement was reached with its wholly owned subsidiary SQM Australia Pty Ltd.
SQM is a global lithium miner and producer, and holds a 50/50 joint venture with Wesfarmers Mt Holland Lithium Project, located in Western Australia.
According to the agreement with the tiny ASX lithium share, SQM has the right, but not the obligation, to sole fund exploration expenditure totalling $12 million over the next six years.
During the first earn-in period, SQM could earn an initial 30% interest in the Dorchap Lithium Project, located in Victoria, by sole funding exploration expenditure of $3 million over the next three years.
During the second and third earn-in periods, which run for a combined additional three years, SQM could earn another 40% interest in the lithium project by funding another $9 million in exploration activities.
SQM can opt to enter into a joint venture agreement with the ASX lithium share at any point after it's earned its initial 30% interest in Dorchap on terms yet to be agreed
Dart Mining will be the initial manager of the project during the earn-in phase.
Commenting on the agreement, Dart Mining chairman James Chirnside said:
The collaboration with SQM brings world class technical and operational expertise to a very worthy exploration target. Dart Mining was the first exploration company to discover Lithium on the East Coast of Australia in 2016.
Through Dart's persistence and early exploration efforts, the project is finally getting the recognition it deserves. We have a clear pathway for project exploration through to the next stage, and our partnership with SQM will ensure that we are able to both attain that objective and enhance our knowledge and understanding of the project within an accelerated timeframe.
Dart Mining share price snapshot
Dart Mining's big intraday leap today erases much of the losses sustained by the ASX lithium share in 2022.
The Dart share price is now down around 6% year to date compared to a loss of 11% posted by the All Ordinaries Index (ASX: XAO).
