The Province Resources Ltd (ASX: PRL) share price is gaining today, despite no price sensitive news from the company.
However, Province announced a new addition to its board today and the announcement came with some exciting fine print.
Right now, the Province Resources share price is 7.69% higher. Its shares are trading for 14 cents apiece.
Let's take a closer look at Province Resources' newest board member and what their appointment might mean for the company.
Image source: Getty Images
Province's new board appointment
The Province Resources share price is gaining today as the company welcomes Rodger Martin to its board.
Martin has previously been the chief of staff to former West Australian Treasurer Ben Wyatt.
The company stated many of the people Province is in contact with have dealt with Martin in his previous role. Prior to his role with Wyatt, Martin was Woodside Petroleum Limited's (ASX: WPL) vice president of corporate affairs.
Martin will take on the role of a non-executive director at Province Resources.
It's also likely the terms that must be met before Martin can receive allocated performance shares is boosting the Province Resources share price. The terms appear to point to the company's confidence in its HyEnergy Zero Carbon Hydrogen Project.
Martin will receive around 1.66 million performance shares when Province announces the completion of a positive scoping study at the HyEnergy Project, to the satisfaction of the company's independent directors.
The directors will be satisfied if Province begins a prefeasibility study (PFS) by 23 October 2022.
Martin will also receive a second lot of around 1.66 million performance shares if Province announces an offtake partner for at least 30% of the project's production before 23 October 2024.
If Province fails its second goal, Martin will receive the second tranche when it sells the project for at least $100 million.
However, the second option is likely less exciting to investors, particularly as Province acquired the project's original owner, Ozexco Pty Ltd, for $750,000 in February.
Commentary from management
Province's managing director David Frances said of Martin's appointment:
I am extremely pleased to welcome Roger to the company, his deep knowledge and vast experience with government and other stakeholders will be critical in the company's efforts to advance the HyEnergy project through the various pathways to approval. His passion for the global energy transition to renewables is something that resonates well with the Province team.
Province Resources share price snapshot
Today's gains have added to Province's recent strong performance on the ASX.
The Province Resources share price is currently 1,300% higher than it was at the start of 2021. It has also gained 600% since this time last year.
The company has a market capitalisation of around $146 million, with approximately 1.1 billion shares outstanding.
