Company Profile Year-to-date gain: 50 percent; market cap: AU$132.45 million; current share price: AU$0.495
Essential Metals is a lithium-focused company with its flagship Pioneer Dome lithium project in Western Australia, near Kalgoorlie. The company has two gold projects in that region as well.
Essential Metals’ share price spiked to AU$0.48 early in the year, when the company announced on January 9 that it had entered into a scheme of arrangement with Tianqi Lithium Energy Australia (TLEA), a joint venture between Tianqi Lithium (OTC Pink:TQLCF,SZSE:002466) and IGO (ASX:IGO,OTC Pink:IPDGF). TLEA is looking to acquire 100 percent of Essential for AU$0.50 per share, and Essential's board has unanimously recommended the deal. Essential was trading at AU$0.345 the day before the announcement, and it passed AU$0.50 to peak at AU$0.54 on February 1.
With regards to progress made at Pioneer Dome, on February 6 Essential Metals announced that a scoping study for the project’s Dome North area “demonstrates the potential viability of a standalone mining and processing operation,” which the company believes supports moving towards more detailed studies. Two weeks later, it was granted a 21 year mining license for the Dome North mineral resource.
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www. investingnews.com/top-lithium-stocks/
ESS Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
