The Monger Gold Ltd (ASX: MMG) share price has been soaring lately, but could it have more joy ahead?
This ASX lithium share has lifted nearly 121% in a month, closing 8.86% higher on Friday at 43 cents.
Let's take a look at what is going on at Monger Gold.
Image source: Getty Images
Could the US climate legislation help?
Monger Gold may be exploring gold, copper and zinc, but it is also intent on playing a role in the lithium future.
On Thursday, Monger shares soared on news it had secured an exclusive option to take over the Brisk Lithium Project.
This mine is located in the James Bay Lithium Project in Quebec, Canada and hosts pegmatite outcrops.
Monger sees this project as an opportunity to cash in on a huge climate bill that recently passed the United States Congress.
Commenting on the latest acquisition this week, CEO Adam Ritchie said:
For Monger, this deal solidifies the foundational lithium asset set. In combination with the
Scotty Lithium Project in Nevada, all three main lithium resource types are now covered being brine, sedimentary and hard rock.This places Monger in a prime position to take advantage of legislation recently passed by the US congress, enforcing a minimum level of locally sourced raw materials within the North American battery supply chain.
In May, the company signed an agreement to acquire the Scotty Lithium Project in Southern Nevada.
In addition, multiple ASX lithium shares have soared this week as United States President Joe Biden signed legislation labelled the "biggest step forward on climate ever".
As my Foolish colleague Bernd reported, this Bill includes an extension on tax credits for new electric vehicles (EVs). The Bill specifies the critical minerals for these EV batteries must come from the US or a nation with a free trade agreement with the US.
Monger share price snapshot
The Monger share price has surged 79% in a year and nearly 105% year to date.
In comparison, the S&P/ASX Materials Index (ASX: XMJ) has climbed 0.11% in a year and lost 1.28% year to date.
Monger has a market capitalisation of about $17 million based on the current share price.
