The Charger Metals NL (ASX: CHR) share price has rallied for four consecutive days, surging more than 100% from 21.5 cents to 52.5 cents.
Charger Metals successfully listed on the ASX on 9 July, raising $6 million at an issue price of 20 cents.
The company owns a majority interest in a number of prospective nickel, copper, cobalt, lithium and gold projects.
The purpose of the initial public offering was to fund the company’s exploration activities with the aim of defining valuable mineral resources that can be monetised either through further development or sale.
Why the Charger Metals share price surging
Renewables hype
Charger Metals portfolio is focused on critical metals used in industries such as battery storage, solar and electric vehicles.
As investors might have noticed, this sector has been on fire lately with other ASX-listed lithium developers and producers surging in the past month. This includes:
- Pilbara Minerals Ltd (ASX: PLS) up 42.95% to $2.13
- Galaxy Resources Limited (ASX: GXY) up 31.8% to $4.93
- Lake Resources N.L. (ASX: LKE) up 64% to 61 cents
- Core Lithium Ltd (ASX: CXO) up 56% to 36 cents
With all the above lithium companies surging in valuation, Charger Metals share price might be at the right place at the right time.
Prospective projects
Charger Metals has an interest in the following projects:
- A 70% interest in the Coates Nickel-Copper-Cobalt project
- An 85% interest in Coates North Project
- A 70% interest in the Bynoe Lithium and Gold project
- A 70% interest in the Lake Johnston Lithium and Gold project
In the company’s July presentation, it cited that lithium, nickel, copper and platinum group metals are “all metals in demand”.
Charger Metals described the Coates project as a “Julimar geochemical lookalike requiring drilling”.
For those that don’t know, the Julimar project is owned by Chalice Mining Ltd (ASX: CHN).
Chalice has described Julimar as a “globally significant discovery” with multiple prospects of high grade nickel, copper, platinum, cobalt and gold.
Chalice has been undergoing drilling activities at Julimar since March 2020. During this time, its share price has surged more than 1,000% from around 40 cents to $6.72 at the time of writing.
In addition, Charger Metals has described Bynoe as “fertile area close to a proposed Li mine” and Lake Johnson as a “large landholding with known spodumene”.
The post Here’s why the Charger Metals (ASX:CHR) share price has surged 100% in a week appeared first on The Motley Fool Australia.
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More reading
- Why Chalice Mining, GUD, Integral Diagnostics, & PointsBet are dropping
- Why the Chalice Mining (ASX:CHN) share price is surging 6% on Tuesday
- Here’s why the Chalice (ASX:CHN) share price is gaining today
- The Venture Minerals (ASX:VMS) share price has slipped today. Here’s why
- The best and worst ASX gold shares to own so far in 2021
Motley Fool contributor Kerry Sun owns shares of Core Exploration Ltd. 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 Bruce Jackson.
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