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Key points
- One ASX lithium share has skyrocketed today
- Critical Resources Ltd has acquired a new lithium project
- Lithium is in high global demand due to its use in electric vehicles
The Critical Resources Ltd (ASX: CRR) share price surged today amid news on the acquisition of a lithium project.
Shares in the company finished 20.88% higher, closing the day at 11 cents apiece after reaching an intraday high of 12 cents each.
Let's take a look at what this lithium miner is exploring.
New lithium project
Investors are reacting to news Critical Resources will take over the Graphic Lake lithium project in Ontario, Canada. This is subject to Canadian Investment Review Board approval.
The news today follows the company acquiring the Mavis Lake lithium project, just 180km away. The company said "synergies" between the two projects shows the company is serious about the Canadian lithium sector.
Managing director Alex Biggs said:
The company is committed to making quality acquisitions and expanding its access to lithium raw materials to provide the Company's shareholders with exposure across a range of battery and critical minerals.
An early-stage project such as Graphic Lake allows us to add significant value from the ground floor, in a commodity that we anticipate will be in high demand for the foreseeable future.
The acquisition will involve an $80,000 cash payment, $120,000 worth of fully paid ordinary shares in Critical Resources Ltd, and a 1.5% net smelter royalty capped at $500,000 Canadian dollars.
The company sees the project delivering both lithium and rare earth elements. These materials are essential components in electric vehicles, which are currently in high global demand.
Share price snap shot
The Critical Resources share price has exploded 358% in the past year and 182% in the past month.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned roughly 11% in the past year.
The company has a market capitalisation of nearly $144 million based on the current share price.
