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(Sharecast News) - Base and precious metals exploration outfit Rockfire Resources has entered into a binding farm-in agreement with Eastern Resources to accelerate exploration at its wholly-owned Marengo Gold Project in Queensland, Australia.
Rockfire said on Monday that the partnership was aimed at unlocking high-grade gold, silver and copper potential across the Marengo Goldfield, with Eastern set to sole-fund exploration activities over a three-year period.
Under the terms of the deal, Eastern will invest up to AUD $1.5m (£733m,290) in staged exploration expenditure, acquiring incremental ownership stakes that will ultimately give it an 80% interest in the tenement upon completion of its funding obligations.
Rockfire will retain the option to hold a 20% interest and contribute on a pro-rata basis, or alternatively convert its stake into a 1.5% net smelter royalty.
"The establishment of this farm-in and eventual joint venture is a positive step for the Marengo project and for Rockfire generally," said chief executive David Price.
"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."
As of 1135 BST, Rockfire shares had surged 19.05% to 0.25p.
Reporting by Iain Gilbert at Sharecast.com
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