Why is the Global Lithium Resources share price rocketing 11% today?

Global Lithium shares are storming out the gates on Thursday.

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Key points
  • Global Lithium shares surge 10.57% to $2.72 during mid-morning trade 
  • The company announced that its major shareholder, Minerals Resources will boost its stake in the company 
  • On the other hand, Breaker Resources is selling off its remaining shareholding to put the funds toward working capital 

Shares in Global Lithium Resources Ltd (ASX: GL1) are on the move today following the company's latest positive release.

At the time of writing, the lithium explorer's share price is powering ahead by 10.57% to $2.72.

This means its shares have now risen by more than 40% in a week.

Let's take a closer look at what the Western Australia-based lithium company announced to the market earlier this morning.

A drawing of a rocket follows a chart up, indicating share price lift

Image source: Getty Images

What's charging Global Lithium shares higher?

Investors are fighting to get a hold of the Global Lithium share price after the company advised that its major shareholder, Mineral Resources Limited (ASX: MIN) will be increasing its shareholding to 8%.

This comes at the same time that Breaker Resources NL (ASX: BRB) announced it was divesting its remaining shareholding in Global Lithium.

Breaker will collect $15 million from the sale and put it towards its working capital.

However, the Australian gold explorer will still retain a 20% free-carried interest in the Manna Lithium Project.

Global Lithium is currently operating three drill rigs at the Manna Project and plans to update its Mineral Resource Estimate (MRE) in Q4 2022.

Commenting on the Mineral Resources boosting its shareholding, Global Lithium non-executive chair, Warrick Hazeldine said:

We are pleased that one of our major shareholders MinRes continues to build its stake in GL1, which clearly demonstrates their strong support in both GL1's assets and the team.

As we continue to progress our programs on the ground at both Manna and Marble Bar, it is truly an exciting time to be part of the global energy transition market. I look forward to keeping our shareholders updated as we advance our ambitions of becoming a significant WA lithium development and production company.

Global Lithium share price review

Adding to today's gains, the Global Lithium share price has accelerated by 160% in 2022.

However, when looking at the past 12 months, the share is up 540%.

Based on today's price, Global Lithium presides a market capitalisation of approximately $173.77 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Scott Phillips.

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