Base metal explorer Trek Metals has turned its attention to the booming battery metals market, buying Northern Territory ground that has the potential for lithium and cobalt deposits.

Trek (ASX:TKM) bought privately-held Elm Resources for $300,000 via a placement of 8.5 million shares at 3.5c each.

Elm owns the Arunta lithium and cobalt project which includes seven exploration licence applications covering some 5274 sq km.

Historic rock chips grading up to 0.12 per cent cobalt have been found at the project. Abundant pegmatites have also been mapped across the project. Pegmatites — rocks formed from lava or magma — are the primary source of lithium.

There is also potential for tin, tungsten, copper, gold, tantalum and niobium mineralisation at the project.

News of the purchase pushed Trek’s shares as much as 42 per ent higher to 5.1c before they closed Wednesday at 4.4c.

Trek Metals shares over the past year. Source:
Trek Metals shares over the past year. Source:

Field work will begin in the next couple of weeks with non-disturbing ground works possible before granting of the tenements which is expected early in the new year.

The project lies some 200km northwest of Alice Springs adjacent to the Tanami Road. A major unsealed link road to the Stuart Highway crosses the eastern part of the project area.

On the back of the purchase, Teck has raised $2.1 million via a placement of 67.7 million shares.

Lead manager for the placement was PAC Partners.

The funds will go towards assessing Arunta, exploration of its Kroussou zinc-lead project and Lawnhill zinc-copper-cobalt project and working capital.

Trek will also use funds to look at other project opportunities.