One of the biggest movers on the local market this morning has been the Avz Minerals Ltd (ASX: AVZ) share price.
The mineral exploration company's shares were up as much as 19% in early trade. At the time of writing they have dropped back a touch and are 14% higher at 12 cents.
Why are its shares rocketing higher?
This morning Avz Minerals announced that it has signed a memorandum of understanding with Shanghai Greatpower for a potential investment and off-take opportunities from its Manono Lithium Project.
Furthermore, management has advised that discussions with other groups are also on-going.
It appears as though the recent drilling results at Manono have caught the eye of many would-be suitors and I can't say I'm surprised.
Thus far the drilling results that have been revealed have been outstanding and appear to show that Avz Minerals has a world-class lithium asset on its hands.
Which is exactly what you want when global lithium demand is tipped to increase exponentially over the next couple of decades.
Because of this, I suspect this won't be the only memorandum of understanding the company signs in the coming months.
Should you invest?
While I do think that Avz Minerals has a world-class asset on its hands that makes it a very attractive takeover target, it is still very early days.
For this reason I continue to believe the best way to gain exposure to the lithium boom is through an established miner with world-class assets such as Galaxy Resources Limited (ASX: GXY).
