Reedy Lagoon shares are on the move after the company released an update on its lithium project in Nevada, USA.

Let's investigate further.

First, a bit more on Reedy Lagoon

Reedy Lagoon is in the business of minerals exploration and development.

It has a number of projects dotted throughout Australia and the US, and has recently embarked on the quest to discover and sell lithium directly to battery manufacturers.

At the time of writing, Reedy Lagoon has a market capitalisation of $9.4 million.

What did Reedy Lagoon announce?

In a positive for the Reedy Lagoon share price, the company announced it had "successfully staked an additional 186 placer claims" in Nevada. These claims adjoin Reedy's Akali Lake North Project.

As a result, Reedy said the project area "now covers the full extent" of a lithium brine target that was previously identified by the company in that region.

That is to say, the additional staked ground covers "1,554 hectares", and now combines with "existing claims (of) 1,042 hectares" at Akali Lake North.

Now Reedy Lagoon has "fully secured the prospective area" and intends to conduct "further geophysical surveys" at the site.

The purpose of these studies is to "better define lithium-brine targets" at Akali and also the company's Clayton Valley site.

Reedy Lagoon also just completed a $1.1 million capital raise from a placement made on 2 September. In the announcement today, Reedy confirmed these funds will be used to finance the development of its lithium-brine projects.

Investors have bought on the news and have sent the Reedy Lagoon share price flying in afternoon trade today.

At one point Reedy Lagoon shares were exchanging hands at 3.9 cents a share, a 95% gain from the open. Since then, however, the Reedy Lagoon share price has retreated to currently trade at 3 cents per share, still a 50% gain on the day.

Reedy Lagoon share price snapshot

The Reedy Lagoon share price has climbed 100% this year to date. It is also up 115% over the past 12 months.

These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)'s return over the past year.

The post Reedy Lagoon (ASX:RLC) share price rockets 95% on lithium update appeared first on The Motley Fool Australia.