ECR Minerals PLC (AIM:ECR) shares climbed 14% on Thursday after the company announced plans for a joint venture to develop its Creswick Gold Project in Victoria, Australia.
The AIM-listed explorer said it had signed non-binding heads of terms with Bold Gold, which will fund up to A$3 million of exploration in return for an 80% stake.
An initial A$250,000 commitment is earmarked for the first year, with Bold Gold required to spend at least A$1.25 million before securing any interest. A joint venture committee, with representatives from both companies, will oversee the work programme.
ECR would retain a 20% stake or could convert its holding into a royalty once Bold Gold earns its full interest. The company stressed the agreement is subject to due diligence and a binding contract.
Chairman Nick Tulloch said the deal fits ECR’s strategy of focusing resources on its Blue Mountain project in Queensland and its exploration work at Lolworth, while still maintaining exposure to Creswick’s upside.
Located within the Dimocks Main Shale, Creswick sits between two prolific Victorian goldfields and has already yielded high-grade assay results. Tulloch said Bold Gold’s expertise would help advance the project without diluting existing shareholders.
The shares rose 0.038p to 0.31p.