Here's why the Antipa Minerals (ASX:AZY) share price jumped 6% today

What's moving the company's shares today?

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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.

Motley Fool contributor Aaron Teboneras 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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