Here’s why the Lithium Energy share price is shooting 16% higher

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

asx share price increase represented by golden dollar sign rocketing out from white domes of lithiumThe Lithium Energy Ltd (ASX: LEL) share price has been a very strong performer on Wednesday after returning from a trading halt.

In morning trade, the lithium explorer’s shares are up 16% to $1.15.

Why is the Lithium Energy share price surging higher?

Investors have been bidding the Lithium Energy share price higher today after the lithium explorer released a very positive announcement.

According to the release, the company has now received all government approvals for exploration and drilling to commence at its Solaroz Lithium Brine Project in Argentina.

With all eight of Solaroz concessions (totalling 12,000 hectares) now approved, a major exploration programme is underway. This will comprise comprehensive geophysical surveys and a significant drilling programme.

The Solaroz Lithium Brine Project is located in the highly prospective lithium triangle in Argentina. It is in close proximity to operations owned by lithium majors Allkem Ltd (ASX: AKE) and Lithium Americas Corporation.

Management commentary

Lithium Energy’s Executive Chairman, William Johnson, was pleased with the news and believes it to be a significant milestone for the company. He said:

“The receipt of the final set of Government approvals for exploration at Solaroz is a significant milestone and major value catalyst for Lithium Energy. In our view, there is no better address in the world to be exploring for lithium than the prolific lithium triangle, and our ground is directly adjacent to or principally surrounded by two of the largest lithium discoveries globally owned by Allkem and Lithium Americas.

Furthermore, Allkem’s recent (April 2022) upgrade to their Olaroz Resource in concessions adjacent or nearby to those held by Lithium Energy has provided further support for the Company’s conceptual Exploration Target for Solaroz.

Exploration activity is already underway and will include geophysical studies and drilling across all of the highly prospective Solaroz concessions, with the objective of establishing a maiden JORC Mineral Resource of contained lithium in brine at Solaroz.”

Mr Johnson also highlighted that there has been a lot of mergers and acquisitions (M&A) activity in the region recently. He commented:

“There has been significant M&A activity in the area showing the global interest in the district and lithium brines in particular, and we are very excited to now be in a position to ramp up our exploration efforts at Soloroz.”

The post Here’s why the Lithium Energy share price is shooting 16% higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem 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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