Leading Edge Materials Corp saw shares surge 11% as it updated on its Romanian ambitions where it is embarked on a path towards applying for an exploration licence.
As reported this summer, the firm took a 51% stake on a proposed battery metals joint venture .
In return, Leading Edge has handed over more than 367,006 of its shares to its joint venture partner.
The alliance is focused on the discovery and development of lithium-ion battery raw materials, and so far, efforts have been directed towards cobalt mineralization in the Balkan region.
Leading Edge has the right to increase its stake in the JV to 90% through the issue of a further 2.2mln of its shares to the co-owner.
Leading Edge Materials will incur all exploration expenditures and has agreed to “free carry” the co-owner – namely, pay all the costs – to production although no firm exploration expenditure commitments are required under the deal.
LEM Romania is now the owner of the 25.5 sq km (2,550 ha) Bihor Sud Prospecting Permit in central western Romania.
The permit lies less than 400km north of Nevsun Resources Ltd.’s Timok copper-gold project in Serbia.
“Staff and consultants to LEM Romania have been active on Bihor Sud Prospecting Permit over the summer period, compiling historic data, sampling historic mine waste dumps, completing preliminary ground geophysics and soil sampling,” the firm said in the statement.
“Review of progress and results to date are considered highly encouraging, and it is anticipated that LEM Romania shall proceed to exploration license application across prospective areas.”
Blair Way, the president and chief executive at LEM, said: “Our Exploration Alliance in Romania is making good progress, with an experienced team in place and work underway on a number of high potential cobalt prospects.
“We look forward to sharing project details as we progress to an Exploration License application”.
LEM shares added 11.29% to stand at $0.345 in Toronto.