Guess which ASX lithium stock just surged 94% on a deal with Mineral Resources

Investors are sending the ASX lithium stock rocketing following a joint venture agreement with Mineral Resources.

| More on:
Miner looking at a tablet.

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

A little-known ASX lithium stock is lighting up the boards on Tuesday.

This comes following the announcement of a joint venture agreement with S&P/ASX 200 Index (ASX: XJO) lithium share and diversified resources producer Mineral Resources Ltd (ASX: MIN).

Shares in the small-cap lithium explorer closed on Monday trading for 16 cents.

In earlier trade today shares were swapping hands for 31 cents apiece, up a whopping 94%. After some likely profit-taking, shares are trading for 27 cents at the time of writing, up 67%.

Any guesses?

If you said Dynamic Metals Ltd (ASX: DYM), go to the head of the virtual class.

Here's why investors are sending the ASX lithium stock flying higher today.

Dynamic Metals shares surge on deal with Mineral Resources

The Dynamic Metals share price is off to the races after the company reported on a binding joint venture and farm-in agreement with HoldCo, a 100% owned subsidiary of Mineral Resources.

Subject to the satisfaction of certain conditions, the agreement will see the ASX lithium stock sell 40% of its lithium mineral rights at the Widgiemooltha tenement package for $5 million.

On completion, Mineral Resources (via HoldCo) and Dynamic will form a 40% / 60% unincorporated joint venture.

Mineral Resources has the right to increase its stake to 65% by sole funding an additional $15 million of exploration over the four years following completion of the agreement.

The deal only relates to lithium. Dynamic Metals will retain the rights to all other minerals at the project.

The agreement will see Mineral Resources pay $400,000 straight off as a signing fee with an additional $3.6 million in cash on completion. The remaining $1 million will be paid on 1 July 2025.

The companies anticipate the deal to be completed in the second quarter of 2024.

Commenting on the agreement sending the ASX lithium stock rocketing today, Dynamic Metals managing director Karen Wellman said:

The Widgiemooltha Project is a regionally significant tenement package that has yet to be fully assessed for its lithium potential. Although we have had some encouraging results with our first pass exploration activities, the sheer size of the Project means that it would likely have taken Dynamic many years and considerable expenditure to assess its potential and realise value…

The initial consideration will be used to advance exploration of our pipeline of new projects, whilst lithium exploration at Widgiemooltha is expected to generate considerable news flow, both short and medium term.

How has the ASX lithium stock been tracking?

With today's intraday gains factored in the ASX lithium stock is well into the green in 2024.

Since the closing bell on 28 December (the last day it traded in 2023), the Dynamic Metals share price is up 86%.

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

Motley Fool contributor Bernd Struben 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 Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares returned to positive territory this Tuesday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »