3 ASX penny stocks exploding over 30% on big news

These stocks are making their shareholders smile on Wednesday.

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The market may be rising today, but that gain is nothing compared to what has been recorded by some ASX penny stocks.

For example, the three stocks listed below have all jumped over 30% in morning trade. But why are investors buying their shares? Let's find out.

Lion Energy Ltd (ASX: LIO)

The Lion Energy share price is up 80% to 4.5 cents. This follows news that it has obtained development approval from the State Assessment and Referral Agency (SARA), the relevant planning agency of the Queensland State Government, for its hydrogen generation and refuelling hub project in the Port of Brisbane.

Lion Energy's hub is geared towards heavy mobility fleets. It has an early focus on supplying hydrogen to domestic public bus fleets, truck fleets, and fuel cell gensets for the construction and mining industry. The facility will be one of the first of its scale in Queensland.

Peak Rare Earths Ltd (ASX: PEK)

The Peak Rare Earths share price is up 67% to 31 cents. This has been driven by the release of the final set of assay results from its critical minerals exploration program. This program is targeting the multi-commodity potential of the Ngualla carbonatite system.

According to the release, the ASX penny stock's assays from the Breccia Zone confirm outstanding high-grade thick intercepts of fluorspar. Management believes this supports the potential of a globally significant fluorspar deposit.

It also highlights that the prospectivity of the Breccia Zone is further enhanced by significant high-grade rare earth mineralisation, as well as elevated levels of niobium.

Sierra Rutile Holdings Ltd (ASX: SRX)

The Sierra Rutile share price is up 35% to 10.5 cents. This morning, the Africa focused mineral sands company announced the receipt of an on-market takeover offer.

According to the release, PRM Services has offered to acquire all of the ASX penny stock's shares that it does not own at a price of 9.5 cents cash per share.

The company has urged its shareholders to take no action and made the following statement:

Sierra Rutile shareholders who sell their shares to PRM Services on-market will be unable to participate in any increase in the offer price or any competing proposal should there be such an increase or any competing proposal is forthcoming.

PRM Services currently has an 11.46% stake in Sierra Rutile.

Motley Fool contributor James Mickleboro 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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