Shares in Global Lithium Resources Ltd (ASX: GL1) are surging north today and now trade more than 22% in the green at $2.46 each.
That marks a 64% gain since January for the company which has seen its equity explode this year, after a period of flat activity for over 12 months.
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Why are Global Lithium shares charging north?
The Global Lithium share price has been catching bids lately as the company drip-fed the market two important updates.
Last week the company advised it had received firm commitments for a $29.9 million capital raising with respect to its Marble Bar Lithium project in the Pilbara, and its Manna Lithium Project.
It also noted that ASX resources player Mineral Resources Limited (ASX: MIN) had joined its register as a shareholder after committing to invest $13.6 million for a 5% stake in the company after the equity raise.
As a result of the placement, Global Lithium's share count will now increase by 22.18 million new ordinary shares, after the placement was issued at a discount of $1.35 per share.
Prior to the update last week, the company advised it had entered into a 10-year spodumene concentrate offtake agreement with its largest shareholder, Suzhou TA&A Ultra Clean Technology Co.
Under the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available inventory from Global Lithium, with an option to increase by an additional 15% each year.
The move is set to advance Global Lithium's operations in Western Australia, the company's non-executive chair, Warrick Hazeldine said.
"As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets," he said.
Global Lithium shares extend their rally today as volume surges to more than 2,227,000 shares – 152% higher than the 4-week average.
Global Lithium share price snapshot
In the last 12 months, the Global Lithium share price has soared 1,130% higher and is up almost 159% this year to date.
Over the past month, alone shares have soared 64% after climbing another 54% this previous week.
