Why Atlas Lithium Stock Is Soaring

Atlas Lithium Corp ATLX shares are trading higher Wednesday after the company signed a Memorandum of Understanding (MOU) with Mitsui & Co.

What Happened: Atlas signed a MOU with Mitsui with respect to Mitsui's potential interest in acquiring the right to purchase Atlas' future lithium concentrate production. 

The MOU contemplates potential funding from Mitsui to Atlas of up to $65 million that would give Mitsui the right to buy up to 100% of Atlas' production from its planned plant.

Atlas has plans to build a plant with output capacity of 150,000 tons of lithium concentrate per year. The funding from Mitsui would be primarily used for the construction of the plant. 

The MOU is non-exclusive for both companies. As part of the MOU, Atlas Lithium and Mitsui will also look to collaborate in other strategic areas.

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Atlas Lithium is focused on advancing and developing its 100%-owned hard-rock lithium project which consists of 52 mineral rights.

ATLX Price Action: Atlas Lithium has a 52-week high of $23.51 and a 52-week low of $1.55.

The stock was up 40.3% at $11.90 at time of publication, according to Benzinga Pro.

Photo: Dean Simone from Pixabay.