Why the Global Lithium (ASX:GL1) share price is surging 12% higher today

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.

The Global Lithium Resources Ltd (ASX: GL1) share price has been a strong performer on Thursday.

In late morning trade, the lithium explorer’s shares are up 12.5% to 71 cents.

This latest gain means the Global Lithium share price is now up 153% in 2021.

Why is the Global Lithium share price shooting higher?

The catalyst for the rise in the Global Lithium share price today has been release of a promising announcement.

According to the release, the company has entered into an agreement to acquire an 80% interest in the exploration and future mining rights in the Manna Lithium Project from Breaker Resources NL (ASX: BRB).

The two parties have agreed a total consideration of $33 million. This comprises $13 million upfront consideration and up to $20 million deferred consideration. The latter will be payable upon certain milestones relating to the mineral resource and future production.

The Manna Lithium Project

The release notes that the Manna Lithium Project is an outcropping spodumene and lepidolite bearing pegmatite exploration project located approximately 100km east of Kalgoorlie, Western Australia.

The Project has an area of influence of 750m x 130m in the main outcrop with individual pegmatite dykes up to 18 meters wide. Furthermore, recent drilling over an anomalous area of 350 metres to the south of these pegmatite dykes has confirmed the discovery of a new zone of spodumene-rich pegmatites.

Global Lithium’s Chairman, Warrick Hazeldine, was pleased with the acquisition.

He said: “This is a strategic acquisition for Global Lithium and follows a rigorous assessment on pathways to grow our asset base for the benefit of all shareholders. It delivers on our objective of growing the Company’s business through complementary acquisitions and diversifying through the acquisition of Manna will deliver the Company another high-quality project located in an infrastructure rich, Tier-1 jurisdiction.”

“The early exploration work at Manna is highly encouraging and Global Lithium looks forward to partnering with Breaker Resources on a substantial exploration and drilling program at Manna in 2022 to capitalise on the global demand for quality lithium assets,” he added.

The post Why the Global Lithium (ASX:GL1) share price is surging 12% higher today appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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