ASX lithium share Mandrake Resources Ltd (ASX: MAN) is defying the broader market sell-off today and racing ahead.
The small-cap lithium stock entered a trading halt on Friday pending the announcement of a proposed new project. Shares resumed trading this morning following on from that announcement.
The Mandrake share price closed on Thursday trading for 5.3 cents. In early morning trading today, the ASX lithium share was trading for 7 cents, up a whopping 32%.
There's been some profit-taking since then, with Mandrake shares currently changing hands for 6.3 cents, up 19%.
Here's what's piquing investor interest today.
What's spurring investor interest in the ASX lithium share?
The Mandrake Resources share price is soaring after the company reported it has secured a large-scale lithium project in the "lithium four corners" Paradox Basin, located in the US state of Utah.
The project covers some 56,000 acres (approximately 226 square kilometres) of lithium brine prospective ground. This includes a binding agreement with the Utah state government for more than 34,000 acres.
With staking still taking place, the ASX lithium share said it would update the market with any increases in the project's size.
A lithium exploration target could potentially be generated in the short term, with Mandrake working towards a maiden Mineral Resource in the second half of 2023.
Commenting on the news that's sending the ASX lithium share rocketing today, Mandrake managing director James Allchurch said:
Mandrake has organically secured a potentially world-class lithium project in the heart of the US, at a time when the US federal government is actively funding and supporting domestic sources of strategic and critical materials such as lithium.
Utah is among the most mining and investment friendly jurisdictions in the US with the state government heavily involved in aiding Utah-based projects play a role in the global energy transition from fossil fuels to renewable energy.
The project has also garnered interest from Galan Lithium Ltd (ASX: GLN).
"The opportunity presented by Mandrake's large-scale Utah Lithium Project is clearly recognised by ASX lithium developer Galan Lithium," Allchurch added.
Galan Lithium is investing $1.5 million for a 5% stake in Mandrake and "will be involved in the project on an ongoing basis in a technical advisory capacity".
Galan's 5% stake comes through the subscription of 30 million shares at 5 cents per share, escrowed for 12 months.
Galan managing director Juan Pablo Vargas de la Vega commented:
The large-scale potential of Mandrake's Utah Lithium Project situated in an extremely attractive jurisdiction boasting power and water infrastructure in the lithium-hungry United States presented a compelling opportunity for Galan to gain early-stage exposure.
Mandrake reported that it is fully funded, with $19 million in cash post the Galan placement.
Mandrake Resources share price snapshot
As you can see in the chart below, the Mandrake share price is no stranger to some big daily moves.
At the time of writing, the ASX lithium share is up a healthy 22% over the past 12 months.
