ASX-listed MetalsGrove jumps on Zimbabwe lithium assets acquisition

Shares in MetalsGrove Mining (ASX: MGA) jumped 16% on Monday after the Australian explorer said it had entered into a strategic agreement to buy six contiguous and highly prospective lithium-tin-tantalum claims in Zimbabwe.

The company, which considers the acquisition a “transformational” opportunity, will pay $60,000 for the claims. They are close to Zhejiang Huayou Cobalt’s Arcadia lithium mine, located east of the capital Harare, which is one of the world’s largest lithium-producing operations with capacity of up to 450,000 tonnes of lithium concentrate per year.

The new claims spanning 5.1 sq. km are situated across the Arcturas and Beatrice projects, where recent rock chip samples have returned grades up to 2.5% and 2.1% lithium, respectively.

MetalsGrove noted they are located close to Harare, to the east and to the south of the capital, about 35 km to 55 km away.

The junior said it was finalizing plans for an initial exploration campaign, due to kick off in the March quarter of 2024.

The company’s stock rose on the news, closing at A8¢ apiece on Monday, giving MetalsGrove a market capitalization of A$3 million (about $2.6 million). 

The lithium industry in Zimbabwe has expanded in the past two years, thanks to about $1 billion of investments brought in by Chinese companies including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group and Yahua Group.

Canadian explorer Li3 Lithium (TSXV: LILI) has also ramped up exploration and reported high-grade results at its Mutare project, located about 30 km from the Chengxin Lithium Group’s producing Sabi Star lithium tantalum mine, 180 km northwest of Harare.

The country is now the world’s fifth biggest primary producer of the material, key in the manufacturing of the batteries that power electric vehicles and high tech devices.