Why is this ASX hydrogen stock up 28% today and over 100% in a month?

This small-cap stock has been catching the eye in recent weeks.

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Gold Hydrogen Ltd (ASX: GHY) shares are back from their trading halt with an almighty bang on Thursday.

In morning trade, the ASX hydrogen stock is up 28% to $1.01.

This latest gain means that its shares have now more than doubled in value in the space of a month.

Why is this ASX hydrogen stock rocketing today?

Investors have been fighting to get hold of Gold Hydrogen's shares today after it raised funds on the back of strong exploration results.

In respect to the former, the company has received firm commitments for a $14.8 million institutional placement at $0.75 per new share to existing and new institutional and sophisticated shareholders.

This represents a modest 5% discount to where the ASX hydrogen stock was trading prior to its trading halt.

The proceeds raised from the offer will be used to fund and advance a work plan to undertake further exploration, well testing, and project development related activities on the Ramsay Project in South Australia.

Gold Hydrogen's Managing Director, Neil McDonald, was pleased with the placement. He said:

This successful placement sets Gold Hydrogen up for an exciting 2024. We are thankful for the ongoing support from our existing shareholders and welcome our new shareholders on this very exciting journey.

Commenting on the company's exploration success and the potential for Ramsay to be a world-class hydrogen project, he said:

We are looking forward to continuing our exploration campaign and undertaking further analysis of our recent drilling results which has to date validated and confirmed the historical results by finding hydrogen up to 73.3% purity, as well as incredibly high helium concentrations of 6.8% (raw gas). Testing and analysis of Ramsay 1 and Ramsay 2 is ongoing but the results to date indicate that the Ramsay Project is potentially a world-class hydrogen and helium project.

Motley Fool contributor James Mickleboro 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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