Why this ASX lithium penny stock is rising today

October 17, 2022 01:34 PM AEDT | By Bhawna Gupta

Why this ASX lithium penny stock is rising today — Image source: © Scanrail | Megapixl.com

Why are Green Technology's shares trading in the green today?

Green Technology’s shares rose despite no price-sensitive news shared by the company today. But the price of the battery material in China last week hit an all-time high.

Additionaly, the company shared an update with the ASX last week. On 10 October 2022, Green Technology had revealed that it had inked a legally binding agreement with Landore Resources Limited (Landore) to purchase back and cancel 50% (1.5%) of the 3% net smelter royalty (NSR) interest over the Root Project. The CA$2 million cash payment to extinguish 1.5% of the Root Project NSR serves as the purchase's consideration. An Extinguishment Agreement between GT1 and Landore must be finalised and signed before 21 October 2022, for the deal to go through.

Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 10 October 2022

About Green Technology

GT1 is a North American focus company. The company's Ontario Lithium Projects include lithium exploration claims (Allison and Solstice) and high-grade, hard rock spodumene assets (Seymour, Root, and Wisa).

Green Technology holds an 80% interest in the Ontario Lithium Projects (Seymour, Root, and Wisa) under a joint venture with Ardiden Limited (ASX:ADV).

On 5 September 2022, Green Technology announced that drilling had begun at its Root Project, which is situated around 200 kilometres to the west-northwest of GT1's flagship Seymour Project.

Stock performance: Shares of Green Technology have grown 1.32% in the last month. However, they declined more than 28% in the last six months. The company's shares have jumped over 20% on a year-to-date (YTD) basis.

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