Talga Resources Share Price Up on New Agreement (ASX:TLG)

At the time of writing, The Talga Resources Ltd [ASX:TLG] share price is trading at $2.11, up 12.53%.

The announcement of a new agreement with ABB Group pushed TLG shares up.

ASX TLG Share Price Chart

Source: Optuma

Talga Resources and the new agreement

The recently renamed Talga Resources brands itself as ‘an advanced materials company focusing on battery anode and graphene additive products.

The company announced an agreement is now signed with ABB Group to support the development and construction of Talga’s Vittangi Anode Project in northern Sweden.

This will see Talga build a scalable battery anode production facility and graphite mine in northern Sweden.

Bolstering the appeal of the product, 100% renewable electricity will be used to supply ultra-low emission coated anode for even greener lithium-ion batteries.

Production is expected to start in 2023.

ABB will give engineering support for the project.

Talga Resources share price

From the March low the Talga Resources share price shot up over 1,100%.

This was on the back of new agreements in Europe and being awarded grants from the UK government.

This is coupled with these recent bullet points from their quarterly:

  • Completion of strongly supported institutional placement
  • Sale of Western Australian gold royalties to Trident
  • Cash balance of A$12.6 million at 30 September 2020

ASX Talga Resources Share Price Chart

Source: Optuma

In the charts, the TLG share price movement is nearly vertical, taking place on expanded trading volume.

In the short term, should the price rise, then the level of $2.23 may come into focus.

If it falls back, it may find support at $2.00 or $1.88.

TLG looks to have some exciting things happening which accelerated the share price upwards, personally though, I think the run-up may slow in the coming weeks.

These types of run-ups frequently have an expiry.

Regards,

Carl Wittkopp,
For Money Morning

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Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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