If you’re looking for today’s biggest mover, you’ll probably be eyeing Brockman Mining Ltd (ASX: BCK) shares.
At its highest point today, the Brockman Mining share price had rocketed 361% higher than yesterday’s closing price.
At the time of writing, shares in the company are trading at 8.8 cents, representing a still mammoth 238% gain.
What’s lit the fire under the Brockman Mining share price? Let’s take a look.
Farm-in and joint venture agreement
Today, Brockman Mining announced its farm-in and joint venture agreement with Mineral Resources Ltd (ASX: MIN) has come to fruition.
The deal was first announced in 2018, but today’s news is that the companies are finally signing the joint venture portion of the agreement.
The deal is between subsidiaries of both companies. Brockman’s Brockman Iron and Mineral Resources’ Polaris are representing their ASX-listed parent companies.
Originally, the deal would have seen Polaris securing 50% of Brockman’s Marillana Iron Ore Project. Today, it’s been updated to also include Brockman’s Ophthalmia Project.
Under the agreement’s terms, Polaris began a farm-in venture at Brockman’s Marillana Iron Ore Project. Once Polaris had met its farm-in obligations, the companies would form a joint venture, each owning half of the Marillana Project.
The farm-in agreement’s obligations include Polaris providing Brockman with a $10 million loan, spending $250,000 to explore and develop Marillana, and completing a mine site plan.
There’s also an agreement that another subsidiary of Mineral Resources would pay for and build a rail and port system from the project to Port Hedland – a distance of around 270 kilometres.
According to Mineral Resources, the project will mine iron ore to be sold in China.
Brockman Mining share price snapshot
The company is dual-listed on both the ASX and the Hong Kong Stock Exchange and, while it’s prone to volatility, today’s moves are next level.
Currently, the Brockman Mining share price is up by around 47% year to date. It’s also up by 340% over the last 12 months.
The company has a market capitalisation of around $241 million, with approximately 9.2 billion shares outstanding.
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Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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