Here's why the Province Resources (ASX:PRL) share price has powered up 253% today

The Province Resources (ASX: PRL) share price has rocketed more than 250% today, following the company's latest acquisition news. Here's what we know.

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The Province Resources Ltd (ASX: PRL) share price is going gangbusters right now, currently up by a whopping 253% to 9.2 cents a share.

The Province Resources share price caught fire this morning after the gold and nickel exploration company announced its intention to acquire Ozexco Pty Ltd. Ozexco has 7 exploration licences in the Gascoyne region in Western Australia for areas considered prospective for salt, potash and mineral sands.

Here's what we know.

Province Resources share price soars on green hydrogen news

Earlier today, Province Resources announced that it has entered a conditional agreement to acquire all of the shares of Ozexco. 

According to the release, the acquisition brings "potential for multiple projects and commodities focusing on Industrial Minerals and Renewable Green Hydrogen."

Through the successful acquisition of Ozexco, Province Resources will inherit the company's Gascoyne project and its HyEnergy renewable hydrogen project.

The Gascoyne project's Carnarvon Basin project will produce salt and potash by using an "inexhaustible seawater resource" to be concentrated through solar and wind evaporation.

According to the announcement, the HyEnergy project is projected to generate 1GW (1,000MW) of renewable energy using wind and solar and to produce ~60,000t of green hydrogen or up to ~300,000t of green ammonia.

The company appointed Viaticus Capital to drive the strategy and execution of the deal.

Management commentary

Commenting on the acquisition and the strategic importance of the green hydrogen space, Viaticus Capital principal Gavin Rezos said:

I am very pleased to support the Company's capital raise given their mission and stated objective is to be part of the solution for decarbonisation of the global economy. Western Australia has all the attributes required to be a world class producer of green hydrogen utilising renewable energy sources and Carnarvon is the most ideal area to make the best advantage of those attributes.

He added:

Green Hydrogen will be an increasingly important future energy source, developing alongside the Lithium industry. Rapid advances in Hydrogen Fuel Cells are now demonstrating that Green Hydrogen will have a major role to play in the areas of mass transport, shipping, trucking, and eventually in homes, helping the world reach targets of being net zero carbon by 2050.

The Province Resources share price was up approximately 160% just minutes after the opening bell this morning, demonstrating the news was well received by investors. 

Today's gains put the Province Resources share price up 360% in the past month and 820% year to date.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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