ASX lithium share Mandrake Resources Ltd (ASX: MAN) is defying the broader market sell-off today and racing ahead.

The small-cap lithium stock entered a trading halt on Friday pending the announcement of a proposed new project. Shares resumed trading this morning following on from that announcement.

The Mandrake share price closed on Thursday trading for 5.3 cents. In early morning trading today, the ASX lithium share was trading for 7 cents, up a whopping 32%.

There's been some profit-taking since then, with Mandrake shares currently changing hands for 6.3 cents, up 19%.

Here's what's piquing investor interest today.

What's spurring investor interest in the ASX lithium share?

The Mandrake Resources share price is soaring after the company reported it has secured a large-scale lithium project in the "lithium four corners" Paradox Basin, located in the US state of Utah.

The project covers some 56,000 acres (approximately 226 square kilometres) of lithium brine prospective ground. This includes a binding agreement with the Utah state government for more than 34,000 acres.

With staking still taking place, the ASX lithium share said it would update the market with any increases in the project's size.

A lithium exploration target could potentially be generated in the short term, with Mandrake working towards a maiden Mineral Resource in the second half of 2023.

Commenting on the news that's sending the ASX lithium share rocketing today, Mandrake managing director James Allchurch said:

Mandrake has organically secured a potentially world-class lithium project in the heart of the US, at a time when the US federal government is actively funding and supporting domestic sources of strategic and critical materials such as lithium.

Utah is among the most mining and investment friendly jurisdictions in the US with the state government heavily involved in aiding Utah-based projects play a role in the global energy transition from fossil fuels to renewable energy.

The project has also garnered interest from Galan Lithium Ltd (ASX: GLN).

"The opportunity presented by Mandrake's large-scale Utah Lithium Project is clearly recognised by ASX lithium developer Galan Lithium," Allchurch added.

Galan Lithium is investing $1.5 million for a 5% stake in Mandrake and "will be involved in the project on an ongoing basis in a technical advisory capacity".

Galan's 5% stake comes through the subscription of 30 million shares at 5 cents per share, escrowed for 12 months.

Galan managing director Juan Pablo Vargas de la Vega commented:

The large-scale potential of Mandrake's Utah Lithium Project situated in an extremely attractive jurisdiction boasting power and water infrastructure in the lithium-hungry United States presented a compelling opportunity for Galan to gain early-stage exposure.

Mandrake reported that it is fully funded, with $19 million in cash post the Galan placement.

Mandrake Resources share price snapshot

As you can see in the chart below, the Mandrake share price is no stranger to some big daily moves.

At the time of writing, the ASX lithium share is up a healthy 22% over the past 12 months.

The post Guess which ASX lithium share just leapt 32% on big news out of the US appeared first on The Motley Fool Australia.

Mandrake Resources Ltd (ASX: MAN) shares are soaring after the gold miner announced it has bought a high-grade copper mine.

At the time of writing, the Mandrake Resources share price is up 42.55% to 6.7 cents.

This is the news that ASX investors have been waiting for after the company requested a trading halt on Wednesday.

In a statement released just after the market opened today, Mandrake described the buy as a "transformational acquisition".

The junior explorer has executed a binding term sheet to acquire 100% of the Delfin Copper Project in Chile. The mine is located in the world's most prolific copper-producing region of Antofagasta.

Mandrake will be in fine company with the Escondida2 copper mine jointly owned by BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) nearby.

This is Mandrake's first acquisition outside Australia. It owns two exploration licences for the Berinka Pine Creek Gold Project in the Northern Territory and the Jimperding PGE-Ni-Cu Project in Western Australia.

More about the Delfin Copper Project

Mandrake will pay staged and conditional consideration for Delfin. This begins with a $1 million loan to the former owner, Atacamoz Pty Ltd, as well as 80 million shares.

The deal is conditional upon the successful completion of a 12-week due diligence phase and regulatory approvals.

The exploration project comprises 84 square kilometres of land with existing infrastructure and year-round accessibility for exploration.

Mandrake notes "multiple spectacular historical drilling intersections … at shallow depths". It intends to begin an active exploration program early in the second quarter of 2022.

Mandrake said 90% of historical drilling was contained to just a 300m x 100m area.

The first priority for Mandrake is to get a better understanding of the mineralisation of near-surface high-grade targets. The company says it is cashed up with $16.2 million available to help fund its exploration activities at Delfin.

Management commentary

Mandrake Resources managing director James Allchurch said:

Mandrake is excited to have secured the Delfin Project, which provides the company with an advanced high-grade copper project in a first-class mining jurisdiction.

Historic exploration has identified several different zones of spectacular high-grade copper mineralisation including 86m at 4.83% Cu from 121m in DD-04.

We see a clear opportunity to apply modern exploration and interpretation techniques to understand these zones and look to grow them ahead of a maiden JORC resource.

Mandrake Resources share price snapshot

The Mandrake Resources share price is down 58% over the past 12 months. In the year to date, it has risen by 34%.

The ASX gold company has a market capitalisation of $22.65 million based on the current share price.

The post This ASX gold miner just bought a copper mine, and its share price is surging 40% appeared first on The Motley Fool Australia.

Below, we take a look at the ASX resource explorers latest drill results.

What update did Mandrake report?

The Mandrake Resources share price is tumbling after announcing it had completed diamond drill hole MNEWDD003 at its Newleyine PGE-nickel-copper prospect in Western Australia.

The company reported that the massive sulphides observed at the drill hole are coincident with the strong down-hole electromagnetic (DHEM) conductor.

Mandrake Resources has conducted 3 diamond drill holes to date to test 3 "discrete, late-time electromagnetic (EM) bedrock anomalies". Its geophysical interpretation suggests the anomalies may be the response of massive sulphides "consistent with Julimar-style PGE-Ni-Cu mineralisation"

The Mandrake Resources share price may be under pressure today, however, as it reported it will need to conduct further drill testing of the area.

Commenting on the results, Mandrake Resources managing director, James Allchurch said:

The appearance of further massive sulphides in Mandrake's third hole is encouraging and highlights the potential of the Newleyine intrusive to host economic mineralisation. Another compelling off-hole conductor has been identified by down-hole EM at MNEWDD002 and we are yet to test our third and final original conductor at plate C.

Allchurch said pending assay results will give the company a better grasp on the platinum group elements (PGE) and base metal concentrations in the 3 holes already drilled. Those results will help it plot out the next round of drilling.

Mandrake Resources share price snapshot

Over the past 12 months, the Mandrake Resources share price has surged 110%, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO).

Year-to-date the Mandrake Resources share price has gone the other direction, down 19% with today's intraday losses factored in. Shares hit all-time highs less than 2 months ago, trading at 23.5 cents on 31 May.

The post Why the Mandrake Resources (ASX:MAN) share price is tumbling 14% today appeared first on The Motley Fool Australia.

The Mandrake Resources Ltd (ASX: MAN) share price is having a woeful day following an update on its capital raise.

During mid-afternoon trade, the mineral exploration and development company's shares are down 6.25% to 22.5 cents.

What did Mandrake announce?

Investors are scrambling to sell Mandrake Resources shares as the company is set to dilute existing shareholder value.

According to its release, the mining outfit announced it has $12 million in firm commitments by a way of placement. The offer saw strong demand from both institutional and sophisticated investors.

In total, 60 million new ordinary shares will be issued at a price of 20 apiece to each participating investor. This represents a discount of around 12.3% to the 15-day volume weighted average price (VWAP).

Mandrake Resources will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to 15% of its total shares to be issued without shareholder approval. The company will use an extension to the listing rule (7.1A) to issue the remaining shares with the additional 10% capacity.

The proceeds of the placement will see Mandrake Resources commence an immediate drilling program of the Newleyine PGE-Ni-Cu target. In addition, the company will conduct a geological and geophysical assessment of the area.

Mandrake Resources will also use the funds to undertake a further reverse circulation (RC) drilling at the Berinka Au-Ag-Cu project. This is expected to begin around July or August of this year.

It is expected the placement offer shares will be settled and allotted to investor portfolios sometime around 17 June 2021.

Mandrake Resources managing director, James Allchurch said:

We are pleased to welcome new institutional and sophisticated investors to the shareholder register. The strong response received for this capital raise reflects the potential for our portfolio of assets, in particular the imminent drilling campaign at the Newleyine project.

About the Mandrake Resources share price

The Mandrake Resources share price has been one of the best performers on the ASX, rocketing over 900% in the past 12 months. The company's shares have soared on the back of positive investor sentiment, particularly in the commodity of copper.

Mandrake Resources commands a market capitalisation of roughly $81 million, with approximately 363 million shares currently on its registry.

The post Why the Mandrake Resources (ASX:MAN) share price is sinking 6% appeared first on The Motley Fool Australia.

The Mandrake Resources Ltd (ASX: MAN) share price is one of the best performers on the ASX today. This comes after the company announced it will commence a new drilling programme.

During early afternoon trade, the mineral exploration and development company's shares are up 23.68% to 23.5 cents, a record high.

Mandrake Resources accelerates drill targets

Investors are driving Mandrake shares into new territory after the company provided a pleasing update.

According to the release, Mandrake Resources advised it has received all the necessary permits and land access agreements to begin drilling operations at the Newleyine Prospect.

Located 30 kilometres east of Chalice Mining Ltd's (ASX: CHN) Julimar discovery in Western Australia, the Newleyine Prospect is a rich PGE-Ni-Cu target. Mandrake controls 100% of a 140 square kilometre exploration licence prospective in the Jimperding Metamorphic Belt.

PGE-Ni-Cu stands for a number of different minerals. The first, platinum group elements (PGE) consist of palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh) and ruthenium (Ru). Next on the list is nickel (Ni), and then copper (Cu).

The Department of Mines, Industry Regulation and Safety (DMIRS) approved the Programme of Work (PoW) application for the drilling campaign.

Mandrake Resources will target three electromagnetic (EM) conductor plates that were identified by a fixed-loop electromagnetic (FLEM) survey. The geophysical interpretation suggests the EM conductor plates could be the response of massive sulphide mineralisation.

The company will seek to run a drilling program targeting PGE-Ni-Cu mineralisation similar to the Julimar Project.

A drill contractor has been secured and is scheduled to start work on 14 June 2021.

In addition, Mandrake Resources noted that it has also completed a geological mapping, sampling and portable X-ray fluorescence program across the Jimperding Project. In particular, anomalies were identified by a recent heli-Versatile Time Domain Electromagnetic (VTEM) survey.

The company said that it will release the results shortly.

Mandrake Resources share price snapshot

Established in 1986, Mandrake Resources is a mineral exploration company that is focused on the development of PGE-Ni-Cu and gold in Australia.

The company's share price has jumped by more than 840% over the past year, and is 170% higher year-to-date.

Based on today's price, Mandrake Resources commands a market capitalisation of roughly $85 million, with 363 million shares outstanding.

The post Mandrake Resources (ASX:MAN) share price rockets 23%, breaks all-time high appeared first on The Motley Fool Australia.