Shares in Oriole Resources PLC (AIM:ORR) jumped 14% to 0.20p after the company signed an earn-in agreement for its Bibemi gold project in Cameroon with Australia's BCM International, resulting in a second up-front payment of US$450,000.
The AIM-quoted gold explorer said the earn-in will see BCM earn up to a 50% interest in Bibemi in return for commitments including providing US$4 million in exploration expenditure and future resource-linked success-based payments.
Oriole expects drilling will start at Bibemi in the current quarter, with expenditure against the agreed funding from BCM having already begun, it said, to complete technical studies ahead of the application for an exploitation licence later this year.
Execution of a second earn-in agreement with BCM relating to the Mbe project is expected later this month.