The American Pacific Borates Ltd (ASX: ABR) share price is leaping 8% after a project update from the borate miner.
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What did American Pacific Borates announce?
The Aussie resources group told the market it has signed a second non-binding letter of intent (LOI) with the US-based group Borman Speciality Materials to supply boron specialty advanced materials.
The LOI supports targeted first production of materials at ABR's small-scale boron facility in the second half of CY2022.
Borman produces a wide range of global specialty products for many markets. These include the semiconductor, life sciences, aerospace, military and automotive markets.
Today's LOI brings a potential partnership involving ABR's Fort Cady Integrated Boron Facility in southern California a step closer.
The company's website says the Californian mine hosts "a multi-generational borate resource where boric acid, borate speciality materials, gypsum and potassium sulfate (SOP) will be produced for the global market".
ABR CEO Henri Tausch said:
We look forward to working with Borman Speciality Materials who have over 80 years operating experience in global markets, on the potential to supply speciality boron advanced materials that will be produced for critical future facing applications.
With partners now engaged for our planned SOP and Borates products, and with increasing favourable market conditions, the Company is fast moving towards initial production of boron specialty advanced materials from its small-scale boron facility in FY2022.
It's not just the CEO who is excited by today's announcement. The ABR share price is leaping higher and is one of the better performers on the ASX today.
Foolish takeaway
The news has clearly impressed shareholders with the ABR share price rocketing on Thursday.
Shares in the resources group are now slightly above where they started the year.
ABR shares are changing hands for $1.54 today compared to $1.50 on 4 January.
