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Why the Carpentaria (ASX:CAP) share price soared 20% higher today

Shares in Carpentaria Resources are climbing after the company revealed positive news about its flagship iron ore project. Here’s what you need to know
The post Why the Carpentaria (ASX:CAP) share price soared 20% higher today appeared first on The Motley Fool Australia. –

The Carpentaria Resources Ltd (ASX: CAP) share price has rocketed today after the company provided an update about its flagship project.

Near the close of trading, the mineral exploration company’s shares are swapping hands for 15 cents apiece, up 20%.

This comes after a statement to the ASX about its Hawsons Iron Project in New South Wales.

What did Carpentaria announce?

Investors are pushing the Carpentaria share price higher following the news of potential development partners stepping up.

In today’s update, Carpentaria advised it has received significant interest in relation to its product offtake for the Hawsons Project.

This follows the company’s recent acquisition of its flagship project from Pure Metals.

According to Carpentaria, the Hawsons project, near Broken Hill, has been identified by independent analysts as the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project.

A pre-feasibility study completed in 2017 revealed the open pit mine had a probable magnetite iron ore reserve of 755 million tonnes.

Carpentaria has a 68.69% interest in the project, with the remaining 31.31% owned by Pure Metals.

Pleasingly, both national and international third parties have signalled their interest to be a preferred offtake partner. Carpentaria said it had begun the process of selecting its development partner for the project.

Furthermore, Carpentaria noted that negotiations with Mitsui & Co. Ltd have restarted, along with other interested parties.

Carpentaria executive chair, Mr Bryan Granzien commented:

Carpentaria has a clear path to development and production and will select its development partners based on a number of criteria.

A key aim is to unlock the full value of the Hawsons Iron Project, as efficiently and cost-effectively as possible, to the benefit of Carpentaria shareholders

How has the Carpentaria share price performed?

Carpentaria shares have performed particularly well since the acquisition announcement in May. While there was not much movement in the 12 months prior, the Carpentaria share price has jumped close to 600%.

On valuation grounds, Carpentaria commands a market capitalisation of about $76 million, with more than 475 million shares on its registry.

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The post Why the Carpentaria (ASX:CAP) share price soared 20% higher today appeared first on The Motley Fool Australia.

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