Gold minnow Monax Mining is looking for a lithium project to help give it a boost.

“Battery metals are well supported by the market at the moment and obviously the price of those commodities is quite high as well,” boss Ian Gordon told Stockhead.

“Lithium is our main target. It’s quite difficult to fund small gold projects at the moment. While we think we’ve got a good project at Western Queen [in Western Australia], we probably just need to keep an eye on where the market is going.”

Monax (ASX:MOX) shares added 20 per cent to close Tuesday at 0.6c, giving it a market cap of just $3 million.

Players in the battery metals space have enjoyed substantial share price gains in the past few years on promising predictions of massive growth in the electric vehicle market.

Monax’s share price, however, is now more than half the 52-week high of 1.3c it reached in April last year.

The company has a preference for Western Australia but has been looking overseas as well.

Monax recently completed field visits to two projects in the Murchison district of WA that were considered prospective for pegmatites.

Pegmatites are rocks formed from lava or magma that are the primary source of lithium.

“Although pegmatites were present on one of the projects, no spodumene was noted and they were not considered extensive enough to warrant further work,” Monax told investors.

Spodumene is the main lithium bearing mineral mined from most hard rock lithium mines around the world.

> Bookmark this link for small cap breaking news
> Discuss small cap news in our Facebook group
Follow us on Facebook or Twitter
Subscribe to our daily newsletter

Monax is aiming to do a deal within the next six months.

“We’re certainly not going to do it on a project we don’t think has got any legs,” Mr Gordon said. “We’ll keep our powder dry until we find something we’re happy with.”