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Here’s why the Metalstech (ASX:MTC) share price is soaring 13% today

The company has updated the market on the sale of its lithium royalties and planned lithium spin off entity.
The post Here’s why the Metalstech (ASX:MTC) share price is soaring 13% today appeared first on The Motley Fool Australia. –

Metalstech Ltd (ASX: MTC) shares are gaining today on news the company has completed the sale of its lithium royalties to North American company, Lithium Royalty Corp (LRC).

At the time of writing, the Metalstech share price is trading 13.04% higher than yesterday’s close at 26 cents. However, earlier today, the company’s shares jumped by more than 17% before partially retreating.

Let’s take a look at what the deal will mean for the lithium, cobalt, and future gold producer.

Metalstech share price gets a boost

More funds in the bank

The Metalstech share price is well in the green on Wednesday after the company reported it has sold 4% of its lithium royalties to Lithium Royalty Corp in exchange for $6.65 million.

Following the sale, Metalstech has $6.8 million in its coffers and can begin funding the exploration and development of its Sturec Gold Mine.

Strurec is ready for phase II of drilling and an acceleration of scoping study works is set to begin shortly.

The mine is located in Slovakia and has historically produced over $3.4 billion worth of gold and silver. That figure was adjusted for today’s metal prices.

Update on Metalstech’s spin off

Additionally, Metalstech’s plan to spin off its lithium assets into an ASX-listed entity is continuing to progress.

The company plans for its spin-off entity to be named Winsome Resources and has reserved the ASX ticker code WR1.

$9 million worth of Winsome shares will be issued for 20 cents each as part of its initial public offering (IPO).

Metalstech originally hoped to raise between $5 million and $8 million in the IPO. That amount has since increased to between $12 million and $18 million.

The company’s plan is that each holder of 3.4 Metalstech shares will receive 1 share of Winsome.

LRC will also be taking part in Winsome’s IPO, subscribing to $3 million worth of shares.  

A shareholder notice meeting for the spin off is expected to be finalised in the coming weeks.  

Metalstech share price snapshot

2021 has been a good year so far for the Metalstech share price on the ASX.

Metalstech shares are currently trading around 29% higher than they were at the beginning of the year. They have also gained more than 100% since this time last year.

The company has a market capitalisation of around $41 million, with approximately 153 million shares outstanding.

The post Here’s why the Metalstech (ASX:MTC) share price is soaring 13% today appeared first on The Motley Fool Australia.

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More reading

Here’s why the MetalsTech (ASX:MTC) share price is rocketing 11% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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