Lodestar Minerals (ASX:LSR) has seen its share price plunge by as much as 30% to A$0.008, a low not witnessed since July 28.

The decline comes as the gold and base metal exploration firm announced it is divesting a 20% interest in the Kangaroo Hills lithium joint venture and has entered into an agreement with Future Battery Minerals.

The divestment process will see Lodestar acquire A$3.5 million in cash and shares, as well as A$3 million in performance rights to Future Battery Minerals.

This strategic move will make Lodestar a significant shareholder in Future Battery Minerals.

Trade volume saw nearly 17 million shares change hands, significantly higher than the 30-day average volume of 5.4 million shares.

Despite the recent slump, Lodestar’s share value has seen an increase of approximately 150% this year, considering the value at the last close.

Lodestar Minerals (ASX:LSR) is a gold and base metal exploration company.