The Global Lithium Resources Ltd [ASX:GL1] share price are up today after a strategic acquisition of Pilbara lithium tenements.
GL1 share price is up 2% at the time of writing.
Global Lithium issued 50 million shares at an issue price of 20 cents per share, with the stock closing 40% up on its debut.
While currently trading 30% higher than the initial issue price, GL1 shares have dipped somewhat recently, down 15% this month.
Global Lithium — the Pilbara-focused explorer — is set to acquire the ‘highly prospective’ tenements E45/4669 and E45/4724 from Fe Ltd [ASX:FEL].
Fe is a mineral explorer with projects covering copper, iron ore, gold, and lithium.
Fe sold its tenements for $350,000 in cash, with GL1 set to assume the existing third-party royalty obligations.
Fe will now focus on its advanced iron projects. At the time of writing, FEL shares were down 5.7%.
The acquired tenements join the southern border of GL1’s wholly-owned Marble Bar Lithium Project (MBLP), located in Western Australia’s Pilbara region.
GL1 stated the acquisition will almost double MBLP’s tenement package, from 150km2 to over 270km2.
The company has a further 93km2 of tenements under application, giving it a ‘dominant position in the area.’
The purchased tenements will extend GL1’s holding of the North Star Basalt greenstone belt, from 11km of strike to over 25km of strike.
GL1 ASX outlook
Previous exploration of the acquired tenements identified a lithium-bearing pegmatite swarm across a 3.5km-long and 4km-wide zone.
RC drilling by previous tenement holders returned ‘significant lithium results,’ with one of the tenement holes returning 4m @ 1.52% Li2O from 14m.
GL1 concluded that the majority of the new tenements remain ‘underexplored’, and the lithium explorer now expects to conduct further mapping, reconnaissance, and target generation.
While some investors may think this acquisition is rather modest, others may be encouraged by Global Lithium continuing to expand and explore ground in a historically prospective region.
Tenement acquisitions increase GL1’s chance of making further discoveries, but there are no guarantees. Investors will likely eagerly await GL1’s next exploration updates.
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