At the time of writing, shares of Jadar Lithium Ltd [ASX:MML] are up by 50%, to 1.5 cents per share.
Why did Jadar Lithium Ltd shares do this?
The company went into a trading halt after surging 50% on 85 trades. The trading halt note stated:
‘The trading halt is being requested pending a response to ASX’s price and volume query letter and an announcement by the Company updating progress on the proposed acquisition of the Austrian Lithium Exploration Assets.’
What now for Jadar Lithium Ltd?
During October, the company announced that it entered into a binding agreement to acquire an 80% interest in Austrian Lithium Exploration Licences. The Austrian Lithium Exploration Licences are located in Carinthia, roughly 270 kilometres south of Vienna in Austria.
The market reacted favourably to the news at the time, as you can see on the chart below:
The share price was trading at around one cent before the announcement. It remains unchanged from the original announcement today. Commenting on the acquisition during October, Non-Executive Chairman Mr Luke Martino said:
‘The proposed Acquisition is consistent with the Company’s strategy to expand its interest participating in the European Lithium market, the Company is broadening its strategic focus to encompass additional European jurisdictions that offers an opportunity to focus on lithium mineral exploration and development.’
The lithium licenses are roughly 20km east of Wolfsberg, an industrial town, with established infrastructure. The area is known for other mining activities, although the main industry is forestry. There’s a pulp and paper mill in operation nearby.
The bottom line: The Austrian Lithium Project Exploration Licences look interesting. They are in a developed jurisdiction and are considered prospective for lithium pegmatites. That said, it’s still early days for shareholders. There hasn’t been any recent geological exploration for these minerals. The company plans to carry out more geological due diligence and will likely update the market soon.
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