The Orexplore Technologies Ltd (ASX: OXT) share price is exploding today.
The company's shares are rising 44% and are currently trading at 11 cents. However, in earlier trade, the company's share price was 50% in the green. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% today.
Let's take a look at why this ASX mining tech share is rising today.
New commercial agreement
Ozexplore has signed a commercial agreement with mining giant Oz Minerals Limited (ASX: OZL).
As part of the project, Orexplore will scan drill-core and samples on site for Oz Minerals.
Ozexplore is a mineral scanning technology company for the mining and metals sector.
The binding agreement is worth about $2.35 million. The work will involve analysing about 30,000m of historical drill core and samples in a six month time frame.
There are about 100,000 drill core and samples available. Further core and samples could be added to this quantity subject to site conditions and requirements.
Ozexplore said signing this agreement is "significant" due to the commercial site deployment of its technology platform.
Commenting on the news, managing director Brett Giroud said:
We are extremely pleased to collaborate with OZ Minerals as they leverage technology
to extract critical new information from drill core and create value through this
innovative process.
Orexplore share price snapshot
The Ozexplore share price has jumped 58% in the year to date, while it has leapt 50% in the past month alone.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 11% in the year to date.
Ozexplore has a market capitalisation of about $10.9 million based on the current share price.
