Here's why the Core Lithium share price is in the green on Monday

Shareholders are bidding up Core Lithium shares on acquisition news out of the company today.

| More on:
A little boy climbs in the green tree eating an apple to its core.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Core Lithium share price is in the green 
  • The company's share price has soared more than 400% in a year 
  • Core Lithium has entered an agreement to acquire a new lithium project 

The Core Lithium Ltd (ASX: CXO) share price is in the green today after the company acquired a new lithium project.

At the time of writing, the company's shares are swapping hands at $1.35 – a 4.26% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.61% today.

Let's take a look at what's happening at Core Lithium.

New Lithium project

Core Lithium advised shareholders it has entered into a binding agreement with Newmont Exploration Pty Ltd. Under the agreement, Core will acquire the Shoobridge project for $250,000 plus a 2% royalty.

Newmont is a subsidiary of United States-based Newmont Corporation (NYSE: NEM). For context, Newmont Corporation is the world's largest gold mining company.

The project is located about 80km to the south of Core Lithium's Finniss Lithium Project in the Northern Territory.

Shoobridge pegmatites have been explored for tin and tantalum in the past, however, Core Lithium will be the first company to explore the site for lithium.

Core managing director Stephen Biggins commented on the news:

While we are firmly focussed on developing the Finniss Lithium Project, we are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities.

The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding lithium production from the project as lithium prices continue to rise.

The takeover is subject to ministerial consent under the Northern Territory Mineral Titles Act 2010.

Core Lithium share price snapshot

The Core Lithium share price has soared 417% in the past year while it has surged 128% year to date.

Additionally, in the past month the company's shares have jumped 39%. However, they have slid 12% in the past week.

For perspective, the ASX 200 has returned nearly 8% in the past year.

Core Lithium has a market capitalisation of $2.21 billion based on its current share price.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

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.

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »