Why the Province Resources (ASX:PRL) share price is up 12%

Could news from yesterday be pushing the Province Resources Ltd (ASX: PRL) share price 15% higher on Thursday?

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Today, the Province Resources Ltd (ASX: PRL) share price is up 12.59% to 15cents at the time of writing. This movement is likely to be driven by its landholding announcement from Wednesday. 

Let’s take a closer look at the announcement and what it means for the Province share price.

What’s driving the Province Resources share price? 

On Wednesday, Province announced that it had recently applied for a further 864km2 in the Gascoyne coastal region. The reason behind this move is to add to its existing industrial minerals Gascoyne Project. In addition to its HyEnergy Zero Carbon Hydrogen Project. The current project area for its two projects covers 1,408km2.

Management commentary

Province managing director, David Frances, commented on the benefits of the additional landholding. 

The identification of the additional 864km2 of tenure complements both the Gascoyne industrial minerals project and HyEnergy green hydrogen project and importantly, gives us greater critical mass in the region. As we continue our desktop studies and progress the tenements to grant, I look forward to further outlining the Company’s initial exploration work programmes.

What does this mean for Province’s projects? 

There’s been a significant amount of hype around renewable energy and in particular, green hydrogen. Province’s acquisition of the HyEnergy project was the catalyst that drove its share price up more than 450% from 2.5 cents to 14.5 cents on 17 February. 

The company plans to produce hydrogen using clean energy produced from solar and wind farms. It is currently collecting wind and solar data to conduct feasibility studies for renewable power generation in the region. An increase to its existing landholding could have positive implications for the commercial scale of its wind and/or solar farm. 

The increased landholding also covers the Pleistocene formation. This is marked as “Significant Basic Raw Material areas of interest” by the Geological Survey of Western Australia. As mentioned by its managing director, the company will continue desktop studies before announcing and committing to its initial exploration programs. 

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Motley Fool contributor Kerry Sun 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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