Corcel PLC (LSE:CRCL) saw its shares soar on Wednesday after the battery metals explorer and developer announced a farm-out and joint venture agreement for its recently acquired rare earth elements project at Mt Weld in Laverton, Australia with Riversgold Ltd (ASX:RGL).
Under the deal, Corcel will receive an immediate cash payment of A$30,000. Meanwhile, Riversgold will earn a 50% interest in the project through paying 100% of the work programme, spending A$500,000 over a 12-month period.
Corcel said it has the right to allow the farm-in of a further 20% for an additional A$1mln carry on the work programme, bringing total carried expenditure to A$1.5mln.
Riversgold will operate the tenements and direct the exploration programme on behalf of Corcel.
READ: Riversgold eyes bigger slice of rare earths pie; aims to begin Mt Weld drilling this quarter
"We are delighted to follow directly our acquisition of Mt Weld with a farm out of half of the position to fund 100% of the near-term development and exploration costs,” commented Corcel chief executive officer Scott Kaintz in a statement.
“This is highly accretive against our acquisition cost and further reinforces the board's view of the project's immediate potential upside and overall attractiveness," he added.
Corcel shares jumped 18% to 0.28p in midmorning trade.