Microcap Lord Resources (ASX:LRD) is surging on the market on Wednesday morning as Mineral Resources (ASX:MIN) – otherwise known as MinRes – farms-in.
And Lord Resources’ shareholders are more likely than not bullish on the news.
Closing at 5.1cps on Tuesday, Lord’s share price has climbed to 11cps at 11.20am AEDT on Wednesday.
That pushes its YTD returns to nearly +75% in the space of 80 minutes on the Wednesday market.
If you’ve been paying attention to what MinRes is up to lately, you can probably guess what it wants from Lord: lithium.
The goliath has farmed-in on Lord Resources’ Horse Rocks Lithium Project, and it only needs to spend $1M for a 40% take.
Lord says it’s more interested in its Jingjing lithium project, while maintaining exposure to “a high-value” project “while ramping up exploration” at the former.
“The agreement validates the strong work Lord has already completed at the Horse Rocks Lithium Project and provides the opportunity to collaborate with a world-class exploration team drawing on their knowledge and expertise of this highly prospective lithium region,” Lord chief Barnaby Egerton-Warburton said.
“We also look forward to ramping up exploration at our Jingjing Lithium Project, which will provide a two-headed lithium exploration strategy.”