Guess which ASX lithium share exploded 67% today

Why is this lithium explorer blowing its top today?

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Key points
  • ASX lithium share Burley Minerals charged 67% higher today before retreating 
  • The mining company's share price is now up 29% at last look 
  • The explorer has acquired multiple lithium projects

The S&P/ASX 200 Materials Index (ASX: XMJ) is in the red today, down 1.18%. But this ASX lithium share is bucking the trend.

The Burley Minerals Ltd (ASX: BUR) share price is on the rise by 25% today to 30 cents. However, in earlier trade, Burley Minerals shares skyrocketed 67% to 40 cents.

So why is this ASX lithium share having such a top run today?

A woman's head literally explodes with goodness.

Image source: Getty Images

Acquisition news for lithium explorer

Investors are buying up Burley shares today on lithium acquisition news. Burley has entered an "exclusive agreement" to take ownership of 100% of the Chubb Lithium Project in Quebec, Canada.

Further, under the deal, Burley would also acquire the Mt James and Dragon Projects, prospective for lithium, in the Gascoyne region of Western Australia.

The project widens Burley's exploration pipeline to high-grade lithium-bearing spodumene projects.

Drilling at the Chubb Lithium project has shown the presence of spodumene-bearing lithium pegmatites.

Burley is also an iron ore explorer, with a 70% stake in the Yerecoin Project near Perth in Western Australia.

Commenting on today's news, Burley managing director Wayne Richards said:

We are very pleased to announce the signing of this Agreement to acquire such high-potential Lithium Projects in jurisdictions complemented by other major Lithium explorers and developers.

The strategic and geographic location of all three potential projects are located in world class mining provinces and in Tier 1 jurisdictions of Australia and Canada.

ASX lithium share Burley's share price snapshot

Burley Minerals has soared 27% in a year, while it has surged 46% in the year to date. In the past month, the company's share price has rocketed ahead 122%.

For perspective, the ASX 200 Materials Index has climbed 14% in a year.

This ASX lithium share has a market capitalisation of about $10.3 million based on the current share price.

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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