The shares of ASX lithium stock Loyal Lithium Ltd (ASX: LLI) are on ice today.
Loyal Lithium shares have soared 30% in the last week and were last trading at 32 cents apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 1.19% in a week.
So what is going on with this ASX lithium stock?
What's happening?
Loyal Lithium shares are frozen today at the company's request. The company is exploring lithium in the James Bay District of Quebec and Sarcobatus Flat in Nevada, USA.
The lithium explorer requested voluntary suspension ahead of an announcement. Loyal Lithium said this relates to a "proposed transaction under listing rule 11.1". It added:
This voluntary suspension will be in place until the Company has complied with the procedures outlined in section 2.10 of ASX Guidance Note 12 in relation to the proposed transaction.
Under listing rule 11.1, a company must provide full details to the ASX as soon as practicable if it plans to make a "significant change".
Loyal Lithium shares shot up 52% yesterday from 21 cents to 32 cents. However, Loyal Lithium was not the only lithium share to rise.
ASX lithium shares skyrocketed amid news Liontown Resources Ltd (ASX: LTR) had received and rejected a takeover offer from lithium giant Albemarle Corp (NYSE: ALB). Albermarle has a market capitalisation of US$25.6 billion.
Meanwhile, on Monday, Loyal Lithium announced it had identified "multiple high value targets" at the Trieste Lithium Project in James Bay, Canada. Loyal Lithium acquired this project in October 2022.
Commenting on this news, managing director Adam Ritchie said:
The identification of high value targets at the eastern extension of the Trieste greenstone provides us with great confidence prior to our summer field program.
Share price snapshot
The Loyal Lithium share price has risen nearly 21% in the last year. However, in the past month, it has dropped 3%.
This ASX lithium stock has a market cap of about $19 billion based on the current share price.
