MetalsGrove shares jump on Zimbabwe lithium assets acquisition
Shares in MetalsGrove Mining (ASX: MGA) jumped 16% on Monday after the diversified Australian explorer said it had entered into a strategic agreement to buy six contiguous and highly prospective lithium-tin-tantalum claims in Zimbabwe.
The company, which said it considers the acquisition a “transformational” opportunity, will pay $60,000 for the claims. They are close to Zhejiang Huayou Cobalt’s Arcadia lithium mine, one of the world’s largest lithium-producing operations with capacity of up to 450,000 tonnes of lithium concentrate per year.
The new claims spanning 510 hectares are situated across the Arcturas and Beatrice projects, where recent rock chip samples have returned grades up to 2.5% and 2.1% lithium respectively.
MetalsGrove noted they are located close to Harare, to the east and to the south of the capital, about 35km-55km away.
The junior said it was finalizing plans for an initial exploration campaign, due to kick off in the March quarter of 2024.
The company’s stock rose on the news, closing at A$0.087 each on Monday, capitalizing MetalsGrove at A$3.03 million (about $2m).
The lithium industry in Zimbabwe has expanded over the past two years, thanks to about $1 billion in investments brought in by Chinese companies including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group and Yahua Group.
The country is now the world’s fifth biggest primary producer of the material, key in the manufacturing of the batteries that power electric vehicles and high tech devices.