The Boss Energy Ltd (ASX: BOE) share price is rocketing today after the company announced it has entered into an agreement with Canadian-listed First Quantum Minerals Limited.
Following the announcement, Boss Energy shares jumped as high as 12.9% in morning trade on Thursday. At the time of writing, shares are up 8.61% at $2.27.
So, what did the miner announce? Let's dive straight in.
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Boss Energy's new joint venture
This morning, the energy company announced it had entered into an "earn-in" exploration agreement alongside Canadian miner First Quantum Minerals.
Under the agreement, First Quantum Minerals will provide $6 million in base and precious metal exploration funding over five years in return for a 51% interest on any discoveries found. The agreement relates to five mining sites at the Honeymoon project.
But first, First Quantum Minerals will undertake an assessment of the area. Quantum has committed $250,000 towards an "exploration targeting and due diligence program," which is now on deadline to be completed by 31 December.
After such time, First Quantum Minerals will either choose to go ahead with the agreement or pull out.
Boss Energy describes its South Australian site, the Honeymoon Uranium Project, as "one of the few uranium projects ready to participate in the early stages of the new uranium bull market."
Commentary from management
In its announcement, Boss Energy describes First Quantum Minerals' record of "discovering and developing deposits" positioning it as "an ideal partner in the exploration and potential development of any base or precious metal discoveries."
Further, the release says:
The agreement enables Boss to remain fully-focused on its core business of uranium exploration, development and production while having exposure at no cost to the significant potential associated with a base and precious metals exploration program led by a global major.
Boss managing director Duncan Craib commented on today's development:
This agreement is an outstanding opportunity for Boss and our shareholders.
We will have a global leader in FQM funding base and precious metals exploration at Honeymoon, giving Boss significant exposure to their success at no cost to us while we focus on our goal of becoming Australia's next uranium producer.
Boss Energy share price snapshot
In the last 12 months, the Boss Energy share price has increased by an impressive 136%.
Based on its current share price, Boss has a market capitalisation of $596.65 and a price-to-earnings ratio (P/E) of 567.5.
