Zinnwald Lithium shares spike on state support for Saxony project

4th Jun 2024 15:54

(Sharecast News) - Shares in Germany-focused lithium miner Zinnwald Lithium rallied on Tuesday afternoon after the Saxony government gave its support for its flagship project.

The Cabinet of the State of Saxony on Tuesday morning instructed the Minister of Economic Affairs to conclude administrative agreements with the German Federal Ministry of Economics for two battery-chain projects in Saxony, one of which being the Zinnwald Lithium Project.

The agreements are to provide grant funding support for Zinnwald's project under the EU's Temporary Crisis and Transition Framework, though a formal decision by the Federal Government will be needed to guarantee funding and is expected at the end of 2024. The state parliament will also need to formally approve its portion of any funding.

Zinnwald's chief executive Anton du Plessis said he was "delighted by this strong expression of support" from the Saxony government.

"Whilst there are no guarantees whether and how much grant funding the project may eventually receive, this is a further indication of the importance being placed on encouraging domestic sources of supply of critical raw minerals in Germany and the EU."

The stock was up 16% at 11.8p by the close of trade in London.