Rockfire Resources PLC (LSE:ROCK) has agreed a binding farm-in arrangement with Eastern Resources Limited (ASX: EFE) to advance exploration at the company’s 100%-owned Marengo Gold Project in Queensland, Australia.
The partnership aims to unlock high-grade gold, silver and copper potential at the Marengo Goldfield.
Under the terms of the deal, Eastern will sole-fund exploration activities at Marengo for three years, with staged expenditures totalling A$1.5 million.
Eastern will acquire incremental ownership stakes culminating in an 80% interest in the tenement upon completion of all funding obligations.
"The establishment of this Farm-in and eventual joint venture is a positive step for the Marengo project and for Rockfire generally," Rockfire chief executive David Price said.
"This enables our team to focus its efforts on the Molaoi project in Greece and allows for the advancement of Marengo at the same time."
Rockfire will have the option to retain a 20% interest and continue funding on a pro-rata basis or convert its holding into a 1.5% net smelter royalty.
In London, Rockfire shares rose 19% changing hands at 0.25p.