Piedmont Lithium share price storms higher: What's getting investors excited today?

This lithium miner is growing its asset base with strategic investments.

| More on:
A young woman holding her phone smiles broadly and looks excited, after receiving good news.

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

sdf

The Piedmont Lithium Inc (ASX: PLL) share price is on the move on Thursday.

In morning trade, the lithium miner's shares are up 3.5% to 57 cents.

Why is the Piedmont Lithium share price storming higher?

Investors have been snapping up Piedmont Lithium shares today after the company announced a strategic investment.

According to the release, the company has agreed to pay C$2 million for a 19.9% equity interest in Vinland Lithium Inc.

Management also advised that the company may earn up to a 62.5% equity interest in Killick Lithium Inc, which is a wholly-owned subsidiary of Vinland Lithium. It holds a 100% interest in the Killick Lithium Project in Newfoundland, Canada.

The Killick Lithium Project's large land package hosts ~60km of highly prospective strike length and initial exploration results have been encouraging.

In addition, Piedmont will be entitled to 100% marketing rights and a right of first refusal on 100% offtake rights to any lithium concentrate produced by the project on a life-of-mine basis at competitive commercial rates.

Why is it making the acquisition?

Piedmont Lithium's chief operating officer, Patrick Brindle, highlights that the partnership will support the company's strategy of growing its hard rock lithium resource base and plans to be a major producer of lithium hydroxide for the North American market. Brindle commented:

The Killick Lithium Project comprises a vast land package in an attractive jurisdiction. Our team has visited the site on multiple occasions and conducted extensive due diligence. Early exploration results are favorable, and the Project's location is advantageous in terms of infrastructure and logistics," said Brindle. "The Vinland Lithium exploration team is highly experienced and will manage all aspects of the exploration program.

While we help fund exploration activities at Killick Lithium, our projects and operations teams remain focused on the ongoing development of our core portfolio, including the producing North American Lithium mine in Quebec and our planned operations in Ghana, Tennessee, and North Carolina.

The Piedmont Lithium share price remains down by almost one-third over the last 12 months.

Motley Fool contributor James Mickleboro 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.

More on Materials Shares

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Pilbara Minerals shares jumps 10% on big news

This lithium miner is having a day to remember on Wednesday. But why?

Read more »

Three miners looking at a tablet.
Materials Shares

Why Bell Potter says this ASX mining stock is a top buy

Let's see which stock the broker is tipping to deliver big returns.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »