Cloudbreak Discovery PLC (LSE:CDL) has brought in a new partner for its Yak project in British Columbia, Canada.
Moonbound Mining, a company Cloudbreak said is well known to its management, will spend C$700,000 on the development of the gold project in return for full ownership.
Cloudbreak will retain a 2% net smelter royalty once production starts and receive cash of C$145,000 and 2.7mln shares in Moonbound, which has committed to listing within six months.
Kyler Hardy, Cloudbreak Discovery’s chief executive, said: "Our partnership with Moonbound represents a formalisation of longstanding relationships with the Cloudbreak team.
“The rocks in this area continue to yield new and exciting mineralisation.
“We are optimistic that the application of modern exploration techniques, coupled with the expertise across both teams, will bring the best chance of success at this project."
Yak is located 80 kilometres south of Whitehorse, Yukon Territory, immediately south of the Yukon border and east of the Alaskan border in northwestern British Columbia, covering an area of 4,020 hectares.