Province Resources (ASX:PRL) share price rises on acquisition update

The Province Resources Ltd (ASX: PRL) share price is rising higher today following a positive announcement. We take a closer look into why.

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The Province Resources Ltd (ASX: PRL) share price is edging higher during late-morning trade. This comes after the company provided investors with an update on the acquisition of Ozexco Pty Ltd.

At the time of writing, the minerals producer’s shares are swapping hands for 22 cents a pop, up 2.3%.

Acquisition completed

Investors appear pleased with the company’s latest news, sending Province Resources shares into positive territory.

According to this morning’s release, Province Resources advised it has completed the acquisition of all shares in Ozexco. This gives right for the company to hold seven exploration licence applications in the Gascoyne region of Western Australia.

The tenements in the area are considered to potentially possess salt, potash and mineral sands. In addition, it provides Province Resource with an opportunity to establish a renewable green hydrogen project over the site.

The newly acquired area also consists of mud-flats in a salt-producing region. The company highlighted that it could be amenable to large-scale solar salt and potash development.

Province Resources revealed it had $7 million in cash to fund future operations.

Earlier in the month, the company entered into a memorandum of understanding (MoU) with global renewable energy leader, Total Eren. The framework paved the way for a feasibility study on potentially developing a proposed HyEnergy Zero Carbon Hydrogen project. This included installing up to an 8-gigawatt renewable power facility, and creating an integrated hybrid renewable energy capacity.

David Frances, managing director of Province Resources, commented:

We are very happy to have completed this acquisition so quickly and smoothly. It is now full steam ahead for Province in our partnership with Total Eren in the assessment of the HyEnergy ZERO CARBON HYDROGEN Project for development as well as continuing to develop our suite of other exciting projects.

Province Resources share price snapshot

The Province Resources share price has delivered astronomical gains to patient investors, rising 2,600% in a year. However, it’s worth noting that year-to-date performance has also been superb, jumping close to 1,600%. The company’s shares reached a high of 25 cents last week.

Province Resources presides a market capitalisation of roughly $214 million, with about 974.6 million shares on issue.

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Motley Fool contributor Aaron Teboneras 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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