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Shares in a mining exploration company Minrex Resources Ltd. (ASX: MRR) are skyrocketing in Tuesday’s session and are now trading 18% higher at 3.2 cents a coin.
That marks a single-year high for the company after taking off last week and has jumped more than 60% since then. Let’s take a closer look at what the company has been up to lately and what is behind its latest stock price moves.
A brief overview of Minrex resources
Minrex – formerly MinRex Resources NL – has its priorities set on exploration for gold and base metals projects in Western Australia.
MinRex currently has five projects, four of which are in the East Pilbara region of WA. These include the Daltons Gold Project, the Bamboo Creek Gold Project, the Marble Bar North Gold Project and the Marble Bar South Gold Project; as well as the Deflector Extended Gold Project in Gullewa.
As of this writing, Minrex Resources has a market cap of $ 15.77 million and is trading well below its 52-week low of 1.4 cents.
What’s up with Minrex Resources lately?
The market reacted late to Minrex’s recent announcement of the acquisition of 4 exploration licenses and mining rights on 3 exploration licenses in the Pilbara region.
The agreements are with Abeh Pty Ltd and with Maxwell Strindberg. The list of acquisitions includes:
- Tambourah Nord Lithium Project
- Tambourah Stream Project
- Shaw River Lithium Project
- Coondina Lithium Project and
- 3 exploration permits for the Soanesville projects.
Minrex believes the acquisition represents an important next step in its home acquisition plan to become an emerging lithium explorer with high quality assets.
It also notes that its operations are within a 70 km radius of the lithium and tantalum producer. Pilbara Minerals SA‘s (ASX: PLS) Pilgangoora site and Mineral Resources Ltd.‘s (ASX: MRL) Wodgina repository.
Several of the new projects complement and offer “fantastic synergies” to the additional lithium projects to be acquired by MinRex, as announced earlier in November.
Investors crowded into Minrex following the announcements. This trend continues today, with participants sending its share price north to 243% higher than its 4-week average volume.
That’s more than 28.1 million Minrex shares changing hands today, up from an average of 8.2 million – a figure that will be skewed upward from recent activity.
Speaking on the announcement, Minrex Resources Managing Director Mr. Kastellorizos said:
The MinRex team, which includes Director George Karageorge, who is one of the founding geologists of the Pilgangoora Lithium-Tantalum deposits owned by Pilbara Minerals, is delighted with the success of the company’s strategy to acquire richer and more land. promising in the eastern world of Pilbara. Class mineral field.
The price of lithium continues to climb to record highs and is now up over 3% for the month and over 400% last year. These strengths bode well for lithium producers and lithium-ion battery companies, according to analysis by Goldman Sachs, Roskill, CRU Group and FactSet.
Minrex Resources Stock Price Snapshot
Over the past 12 months, the Minrex Resources share price has climbed over 45% and is now up 60% this year to date.
These returns are a galaxy ahead of the benchmark S & P / ASX 200 Index (ASX: XJO) a gain of about 12% over the past year.