Shares of Lithium Power International (ASX:LPI) rise as much as 23.1% to A$0.320, reaching their highest level since July 24.

The stock is last up 19.2%, seeing its best day since April 1, 2022 if gains hold.

The specialty miner confirms that it is in discussions with Corporación Nacional del Cobre de Chile (Codelco) regarding a potential transaction.

The company notes that Codelco has been granted due diligence but there is no certainty that discussions with Codelco will result in a transaction.

Today, more than 1.4 million shares have changed hands, compared with the 30-day average volume of 624,944 shares.

Despite today’s gains, the stock is still down 40.9% this year, as of the most recent close, compared with a 0.1% increase in the ASX All Ordinaries index.

Lithium Power International (ASX:LPI) is a specialty miner focused on lithium extraction.