Why the OM Holdings (ASX:OMH) share price is rocketing 30% higher

It certainly has been a great day for this ASX share…

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One of the best performers on the Australian share market on Thursday has been the OM Holdings Limited (ASX: OMH) share price.

In early afternoon trade, the manganese and silicon focused mining company’s shares are up 30% to a two-year high of $1.06.

This latest gain means the OM Holdings share price is now up 93% since the start of the year.

Why is the OM Holdings share price on fire today?

OM Holdings’ shares could be racing higher today in response to an announcement by Bryah Resources Ltd (ASX: BYH).

According to the release, OM Holdings has elected to continue funding a further $500,000 of exploration in the Bryah Basin Manganese Joint Venture. This will increase OM Holdings’ interest in the joint venture from 40% to 51%.

Bryah Managing Director Neil Marston said: “We have been very successful in our exploration efforts to date and believe that there is significant potential to identify sufficient resources to support the commencement of high-grade manganese mining operations in the Bryah Basin in the near future.”

“We are very pleased that OM (Manganese) Limited [OM Holdings’ subsidiary] has elected to continue funding exploration on this exciting manganese project. These funds will be applied by Bryah to advance the project towards development in the near term.”

The release also notes that a Gradient Array IP (GAIP) survey was completed earlier this week at the Brumby Creek Prospect. This is where earlier reverse circulation and diamond drilling intersected significant high-grade manganese mineralisation.

Judging by the OM Holdings share price movement today, some investors may be optimistic that this survey will reveals further potential mineralisation for the joint venture to target.

What else could be driving its shares higher?

Also potentially giving the OM Holdings share price a boost today is its performance on the Malaysian share market, which is no doubt boosting investor sentiment.

Earlier this week the company’s shares debuted on the Malaysian Bursa. Since then its Malaysia-listed shares have stormed higher and continue to rise today. In fact, based on current exchange rates, investors are paying a meaningful premium on the Bursa to own its shares.

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Motley Fool contributor James Mickleboro 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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