Northern Cobalt has added five new cobalt-prospective tenements to its Wollogorang project in the Northern Territory.

Investors welcomed the news, driving shares up as much as 7.2 per cent to 52c not long after market open on Wednesday.

The shares closed at 51c — up 5 per cent.

The cobalt sector represents a growing opportunity for investors as increasing global demand for electric vehicles drives demand for cobalt-based lithium-ion batteries.

Northern Cobalt’s (ASX:N27) new ground covers the same prospective geology as the Stanton deposit and Selby prospect.

N27 shares hit an intra-day peak of 52c just after market open.
N27 sha res hit an intra-day peak of 52c just after market open.

The company has applied for two other tenements across the border in Queensland.

“The Stanton cobalt deposit is only the beginning in this region for Northern Cobalt,”boss Michael Schwarz said.

“As our geology team begins to unlock the exploration space of the metalliferous Gold Creek Volcanics, we see the potential for multiple examples of cobalt mineralisation in the region.”