The WA1 Resources Ltd (ASX: WA1) share price entered a trading halt today after soaring more than 60% this morning.
Shares in the ASX mineral explorer rocketed up 60.48% to $1.99 a share before being placed on ice. The company’s previous closing price was $1.24.
Let’s take a look at what’s going on at WA1 Resources.
What’s going on?
WA1 Resources was placed in a voluntary trading halt pending the release of a statement to the market.
The company expects to resume trading on the release of this announcement, or by market open on Thursday.
Commenting on the freeze, WA1 said:
The company requests a trading halt, pending the release of an announcement to the market in relation to a price query from the ASX.
WA1 Resources shares have soared an incredible 1374% from 13.5 cents each at market close on 21 October to the current share price of $1.99.
On Wednesday, the company released maiden drilling results from the West Arunta Project in Western Australia.
They showed significant mineralisation at drill hole PARC003. This included 54m at 0.62% niobium pentoxide, 0.18% total rare oxides, and 3.85% phosphorus pentoxide from 162 metres.
Managing director Paul Savich hailed the discovery as the first of its kind in the region. He said:
Niobium has been identified as a critical mineral by a number of countries and is a key input to future global technology needs, with ferroniobium metal (65% Nb) selling for US$45,000/tonne.
On Thursday, WA1 Resources released a corporate presentation highlighting its focus on “essential metals for a clean energy future”. Niobium improves battery performance via improved chargeability and stability.
WA1 Resources listed on the ASX on 8 February.
Share price snapshot
WA1 Resources shares have soared 895% year to date, while they have risen 1,184% in the last month.
For perspective, the ASX 200 has lost 7% in 2022 so far.
This ASX mining share has a market capitalisation of nearly $58 million based on the current share price.
The post Why was this ASX mining share placed on ice after exploding 60% today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Monica O’Shea 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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