Marquee takes off after picking up Canadian cobalt player
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Lithium explorer Marquee Resources has rocketed 76 per cent after putting its foot on cobalt-prospective projects in Canada.
Marquee’s (ASX:MQR) share price jumped as much as 76 per cent to 44c, marking a new high since it debuted on the ASX in mid-March.
The company has struck a deal to acquire Canada’s CO27 Pty Ltd, which has agreements to acquire the Werner Lake, Warner Lake East/West and Skeleton Lake projects for 11 million shares and cash payments of $200,000 and US$150,000 ($196,599).
The ASX pinged the company on November 8 over a sudden spike in its share price from a low of 21.5c to a high of 25.5c.
Marquee responded to the Australian bourse on Tuesday following the announcement, saying that it is “firmly of the view that confidentiality was maintained throughout the negotiation of the proposed acquisition”.
The company also put the recent share price spike down to the substantial increase in investor demand for junior resource stocks over the past few months.
“This is particularly the case for ASX-listed lithium and cobalt exploration and development companies,” Marquee added.
Until now, the company’s sole focus has been on advancing its Clayton Valley lithium project in Nevada, USA, which is located about a 3.5-hour drive from Tesla’s mega-factory – the world’s largest lithium battery manufacturer.
But cobalt has caught Marquee’s eye as well.
“By acquiring these three abutting projects we have consolidated the Werner Lake area, which contains the previously operating Werner Lake cobalt mine,” boss Charles Thomas said.
“Werner Lake is one of the key cobalt resources in Canada and this transaction enables Marquee shareholders to gain exposure to the booming cobalt market, which is a critical material to the growing rechargeable battery market.”
Marquee is in advanced stages of the due diligence process already, Mr Thomas told Stockhead.
“Next stage is obviously completing due diligence, going to shareholders for approval of the acquisition, and then fast tracking exploration immediately after that,” he said.
Marquee plans to start drilling on the projects in the first quarter.