Shares in Tertiary Minerals PLC (AIM:TYM) perked up 26% to 0.12p on news that the company's 90% owned subsidiary, Copernicus Minerals, has struck a funding and earn-in agreement with First Quantum Minerals (TSX:FM) for the development of the Mukai Copper project in Zambia.
A binding letter of agreement has been signed that grants First Quantum an initial exploration due diligence period of 24 months if it spends US$1.5 million on exploration, including US$0.5 million in the first year.
Following that, First Quantum may then enter into an earn-in and joint venture agreement to earn an initial 51% joint venture interest within a further 24 months and a further 29% joint venture interest by ticking other boxes.
Tertiary executive chairman Patrick Cheetham said First Quantum is "strongly motivated to find additional ore feed" for its Sentinel mine and Mukai offers "a priority soil anomaly" along strike from copper mineralisation already drilled by First Quantum on its adjacent Tirosa prospect.