Why the Minotaur Exploration (ASX:MEP) share price is up 22% today

Following today's lift, Minotaur shares are now within striking distance of their 52-week high.

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Minotaur Exploration Ltd (ASX: MEP) shares are having a bumper day on the ASX on Thursday. At the time of writing, the Minotaur share price is rocketing 21.74% to 14 cents.

Let's take a look at why the diversified exploration company's shares are surging.

What's driving the Minotaur share price?

Minotaur Exploration is a contributing partner to the Great White Kaolin Joint Venture (GWJV) with a 25% stake in the project. Adromeda Metals Ltd (ASX: ADN) is the manager of GWJV and owns the remaining 75%.

The Minotaur share price is surging after the company announced that the GWJV had secured a binding supply and purchase agreement.

According to the release, the GWJV will provide Great White PRM coatings and polymer product at a sale price significantly higher than what was assumed in its pre-feasibility study back in 2020.

As the manager of the GWJV, Adromeda's ASX announcement provided additional details regarding the offtake partner and contract details. The Adromeda share price is also rallying by more than 20% today.

What's next for the GWJV?

The Great White project is rich with halloysite. This is used as a porcelain ceramic additive and potentially within a range of new technology applications.

Andromeda Metals previously announced a $4 million research partnership with the University of Newcastle's Global Innovative Centre for Advanced Nanomaterials (GICAN) to research carbon dioxide capture through the use of halloysite nanotubes.

However, as of now, halloysite's main applications are in ceramics, where it adds more whiteness, transparency and strength to porcelain.

Andromeda Metals is currently progressing a definitive feasibility study (DFS) to assess the economic viability of the project. The DFS report is expected to be release in July 2021.

Minotaur Exploration share price snapshot

Minotaur Exploration has a market capitalisation of just $57 million. As a microcap with a portfolio of early-stage exploration projects, its share price can be very volatile depending on the exploration outcomes of its prospects.

2020 was a solid year for the Minotaur share price, which rallied from 5 cents to 17 cents for a gain of around 240%. Despite struggling in recent months, and slipping to an 8-month low of 10.5 cents in mid-May, today's news has put Minotaur shares back within reach of their 52-week high of 24 cents.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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