There have been a number of big moves in the mining sector on Tuesday.
But two that are moving more than most are listed below. Here's why these ASX mining shares are rocketing today:
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Novo Resources (ASX: NVO)
The Novo Resources share price is on fire on Tuesday with a 63% gain to 24.5 cents.
This follows news that the company has signed an agreement with the Australian subsidiary of lithium giant Sociedad Química y Minera de Chile S.A. (NYSE: SQM).
According to the release, SQM Australia has agreed to form the Harding Battery Metals Joint Venture and pay $10 million for a 75% interest in five of Novo's prospective lithium-nickel tenements in the West Pilbara.
These tenements are close to the Andover Project owned by Azure Minerals Ltd (ASX: AZS), which SQM is currently in the process of acquiring with Hancock Prospecting.
The ASX mining share's executive co-chairman and acting CEO, Mike Spreadborough, said:
To be participating in a JV with a global lithium leader like SQM is an excellent outcome for Novo and will see us receive an immediate payment of A$10 million that will further boost cash reserves for our primary gold exploration focus. Meanwhile, SQM can focus on the battery metals prospectivity of the West Pilbara area and our shareholders can benefit from future exploration success with a free-carried interest until a decision to mine.
Sarytogan Graphite Ltd (ASX: SGA)
The Sarytogan Graphite share price is up 33% to 26 cents this morning thanks to a positive announcement.
The graphite-focused ASX mining share revealed that it has produced its first spheroidised graphite from the Sarytogan Graphite Deposit in Central Kazakhstan.
Management notes that the result demonstrates its exceptionally high-grade graphite product that can be used in the electric vehicle market.
Sarytogan's managing director, Sean Gregory, commented:
What a way to end the year! This result allays all doubts of the giant and exceptionally high-grade Sarytogan Graphite deposit's suitability to vie for a share of the rapidly growing lithium-ion battery market for electric vehicles and other uses, subject to customer qualification. We have now complimented the ultra-high purity of 99.998% with these outstanding physical spheroidization results at high yields of ideally sized spheres. We now charge into 2024 on a mission to measure the battery performance of these products.
