A Canadian mining company called Musk spiked this week after buying the rights to the 'Elon' lithium property
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- Shares of Musk Metals popped this week following the Canadian miner's deal to buy a lithium property called "Elon".
- Musk Metals says the deal arrives as the "shift to electric vehicles" drives demand for battery metals and materials.
- The company plans to acquire 3 million shares of Tonto Investments for the deal.
- See more stories on Insider's business page.
Shares of Canadian miner Musk Metals pulled back Wednesday after a more than 50% surge following the company's deal to acquire a prospective lithium property named "Elon".
Musk Metals' press release on Tuesday outlining its deal didn't make a direct reference to Elon Musk, the famed CEO of electric car maker Tesla and billionaire bitcoin enthusiast.
The miner said it reached an "arm's length" share-purchase agreement with Tonto Investments to acquire a 100% interest in the "Elon" property in Quebec, Canada. Musk Metals plans to acquire all 3 million of Tonto's issued and outstanding shares, subject to regulatory approval and other customary conditions.
Musk Metals' Canada-listed shares fell by 14% on Wednesday after soaring 56% to C$0.14 ($0.11) on Tuesday. Its US-listed shares that are traded over the counter also fell during Wednesday's session.
"Fueled by the recent shift to electric vehicles, demand for battery metals and materials has skyrocketed. Musk Metals has diversified its portfolio of highly prospective exploration projects to include the "ELON" lithium property as the company strives to maximize shareholder value by participating in this red-hot space," said Nader Vatanchi, chief executive and director at Musk Metals, in a statement.
The company said the Elon lithium property is located in an active lithium exploration and mining area and spans over 245 hectares in the La Corne and Fiedmont townships of Quebec.
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