The Antipa Minerals Ltd (ASX: AZY) share price is roaring higher on Thursday. This comes after the mining exploration company announced an update on the farm-in agreement on the Paterson Project.
At the time of writing, Antipa shares are swapping hands for 4.9 cents apiece, up 6.52%. In comparison, the All Ordinaries (ASX: XAO) is up 0.35% to 7,709.1 points.
What did Antipa announce?
Investors are buying up the Antipa share price after the company revealed a favourable decision by IGO Ltd (ASX: IGO).
According to its release, Antipa advised that IGO Newsearch will assume management of the farm-in agreement on the Paterson Project.
Based in the Paterson Province of Western Australia, the Paterson Project covers a 423 square kilometre tenement. The site is considered to have considerable gold, copper and silver deposits similar to the Newcrest Mining Ltd (ASX: NCM) world-class Telfer gold-copper mine.
IGO's decision to manage the Paterson Project follows its initial $4 million exploration expenditure commitment. The funds were well ahead of the January 2023 due date stipulated in the Paterson Project farm-in agreement. No joint venture interest was earned by the incurring of this amount.
The next stage requires IGO to spend a further $26 million of exploration expenditure by January 2027. This will see it earn a 70% joint venture interest, which it has elected to manage.
Once the joint venture is formed, IGO is expected to free-carry Antipa to the completion of a feasibility study.
Antipa share price in review
In 2021, the Antipa share price has gained around 10%, but has fallen almost 26% in a month. The company's shares have noticeably been trending lower since mid-November, nearing a 6-month low of 4.1 cents.
Based on valuation grounds, Antipa commands a market capitalisation of roughly $153.85 million, with 3.14 billion shares outstanding.
