Why is the Province Resources share price leaping 8% on Thursday?

What did Province Resources announce to the market today?

Key points
  • Province Resources shares surge 12.50% to 13.5 cents during afternoon trade 
  • The company announced it has secured additional land to develop its HyEnergy project 
  • Province Resources shares are down 8% despite today's gain 

The Province Resources Ltd (ASX: PRL) share price is gaining ground on Thursday following a positive company update.

At the time of writing, the minerals producer's shares are up 12.50% to 13.5 cents apiece.

Let's take a look at what the company announced to the ASX earlier today.

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today

Image source: Getty Images

Why are Province Resources shares surging today?

Investors are rallying up the Province Resources share price as the company announced it has secured additional land.

According to the release, Province Resources advised it has been issued another section 91 licence from the Western Australian government.

This will see over 2,217 square kilometres of additional land granted to develop the Green Hydrogen project.

Province Resources and its joint development partner, Total Eren are pursuing to conduct studies to support feasibility activities.

In total, the area under licence now amounts to more than 3,000 square kilometres of land in the region.

Province Resources stated that negotiations are underway with the state government for enduring tenure over the project area.

Province CEO and managing director, David Frances commented:

The issue of these licences was only possible with the support of the Gascoyne community and we are delighted with the way stakeholders have embraced the HyEnergy Project.

Securing land tenure is a critical element of this project and it is pleasing to have the support of Traditional Owners, pastoralists and the Local and State Government in this process.

We are excited to pursue the next steps of the HyEnergy Project together with our partner Total Eren, a global renewable energy leader with whom we share a strong commitment to take part in Australia's green hydrogen strategy.

Province Resources share price recap

The Province Resources share price hit a 52-week low of 5 cents in June before rocketing thereafter.

Despite the strong gains made today, its shares are down 8.6% in 2022.

Province Resources commands a market capitalisation of approximately $129.83 million.

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 Scott Phillips.

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