The S&P/ASX 300 (ASX: XKO) has climbed 0.78% in the last two days, but this ASX 300 lithium share is far outperforming the index.
The Leo Lithium Ltd (ASX: LLL) share price is up 29% this trading week and is now at 93.2 cents. In today's trade alone, the company's share price is soaring 9.65% at the time of writing.
So what is going on with this ASX 300 lithium share?
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What's happening? e Fri
Leo Lithium is outperforming multiple ASX 300 lithium shares today. In late trading on Tuesday, Core Lithium Ltd (ASX: CXO) shares are down 4.1%, while Pilbara Minerals Ltd (ASX: PLS) shares are down 1.54% and Lake Resources N.L. (ASX: LKE) shares are 2.43% lower.
The price of lithium carbonate (99.5% battery grade) is currently 0.85% higher on the Shanghai Metals Market.
It appears investors are buying up this ASX lithium share on the back of strong momentum from a recent announcement.
The company has secured a $106 million strategic placement and cooperation agreement with Ganfeng Lithium, the largest lithium producer in China.
Under the deal, Gangfeng will buy up 131 million new Leo Lithium shares at a cost of $106.1 million. The strategic offer price of 81 cents per share is an 11.7% premium on the last closing price before the announcement was made. However, it is considerably lower than the company's share price at the time of writing.
The strategic placement, subject to regulatory approval, would mean Leo Lithium is completely funded for its share in the Goulamina Stage 1 development in Mali, Africa.
This will include conducting a study looking at raising stage two capacity to 500 kilotonnes per annum. This would boost the total forecast capacity at the project to one million tonnes per year.
Leo Lithium's Goulamina lithium project, a joint venture with Ganfeng, is expected to deliver first spodumene concentrate by the middle of next year.
Leo Lithium reported "thick high-grade mineralisation" at Goulamina last week.
The team at Wilsons placed an "overweight" rating on the company's share price earlier this month.
Share price snapshot
The Leo Lithium share price has jumped 33% in the last year. In the year to date, Leo Lithium shares have soared more than 90%.
This ASX lithium share has a market capitalisation of about $915 million based on the latest share price.
