Why is the Tombador Iron (ASX:TI1) share price up 11% today?

The Tombador Iron Ltd (ASX: TI1) share price is rocketing higher today, up more than 11%. Here's why investors are chasing this ASX miner.

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The Tombador Iron Ltd (ASX: TI1) share price is on fire today. At the time of writing, Tombador shares are up a healthy 11.25% to 8.9 cents a share. That's after closing at 7.8 cents yesterday and opening at 8.5 cents this morning. Today's share price rise means that Tombador is now up more than 27% over the past month, and up more than 48% year to date.

So who is Tombador? And why are this company's shares rising so robustly today?

Tombador is a prospective mining company that owns the rights to the Tombador iron ore project. This project is located in Bahia State, in Brazil. Tombador plans to develop this site into a low cost, open-cut iron ore mine in the "near term". The company only listed on the ASX in October last year. Since then, it has proven a sound investment thus far, seeing as Tombdor shares have more than doubled since.

Why are Tombador shares shooting up today?

The catalyst for Tombador's outperformance today appears to be an ASX announcement that the company released before the market open this morning. In this announcement, The miner told investors that its Tombador project has been granted a 'mining concession' by the Brazilian Ministry of Mines and Energy. This was reportedly published in the 'Official Gazette' yesterday. It means that the Tombador Exploration Tenement is now officially a mining concession. The company also stated that since the gazettal has now occurred, it can seek an environmental operating license, the final step before production can commence.

Here' some of what Tombador CEO Gabriel Oliver had to say on this development:

Tombador Iron is delighted to note the grant of the Mining Licence for the Tombador Iron Project. With this key milestone achieved, the company continues to guide towards first production from our high-grade hematite Fe product before the end of this Quarter.

At the current share price, Tombador Iron has a market capitalisation of $92.9 million.

Motley Fool contributor Sebastian Bowen 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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