Here’s why the Podium (ASX:POD) share price is up 5% on Tuesday

The ASX resources share claims the own spot on its own podium today.

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The Podium Minerals Ltd (ASX: POD) share price is gaining ground on Tuesday, currently trading up around 5% higher at 31 cents each.

Podium Minerals’ shares are on the move as the company released a suite of price-sensitive updates to the market today.

Let’s get straight into analysing each one.

What was announced?

Podium released 4 price-sensitive announcements for the market to digest today. The first is in reference to a share purchase plan (SPP) the company is affording its shareholders.

Under the SPP, eligible shareholders are able to acquire up to $30,000 worth of Podium shares without paying any brokerage costs, commission or transaction fees.

The offer supports the company’s recently completed placement of $4.5 million to sophisticated investors at 29 cents per share.

Participants in the SPP will have the right to purchase Podium Minerals shares at 29 cents per share too, which represents a 6.5% discount to its current market price. It closes on 8 November.

The company hopes to raise up an additional $2 million via the SPP, which will be fed straight into its Parks Reef PGM project, in addition to beefing up working capital.

Regarding the Parks Reef project, Podium released another update concerning it as well today. The release notes that diamond drilling is set to commence at the site, to run tests greater than 500m below the surface.

An initial two 750m “deep diamond drill holes” will be dug to test the continuity of the mineralisation identified at the site.

Drilling will take around 4 to 6 weeks to complete, and will test the reef around 520m below the surface. Then, Podium intends to drill a third hole to “target the central sector”.

These depths Podium intends to drill to “is more than twice the depth of any previous drilling conducted at Parks Reef”.

It follows on from the recent drilling programs where Podium intersected high grade platinum and palladium zones, alongside traces of rhodium and iridium.

What else did Podium release?

Finally, Podium also released two investor presentations today. One of these covers the entire company and the full scope of its operations, capital structure, risks and goes into great detail on mining studies and drill results.

Whereas the other is a specific presentation to the “Canaccord Genuity South-West Connect ASX Showcase” scheduled on 27–28 October.

The latter appears to be a more consolidated version of the full presentation and contains several slides on the Parks Reef site and other strategic supply opportunities.

Investors appear to be piling in on the flurry of updates from the resource company’s camp today and have driven the Podium Minerals share price higher on a volume 90% of its 4-week average.

Podium Minerals share price snapshot

The Podium Minerals share price has gained 210% this year to date, however is down around 30% in the last month.

Yet, it has climbed 138.5% in the last 12 months, well ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 21% in the same time.

The author Zach Bristow has no positions 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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