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(Sharecast News) - Galileo Resources announced on Tuesday that it has entered into a royalty and exploration agreement with Bronco Creek Exploration (BCE), a subsidiary of EMX Royalty Corporation, to advance exploration at its 100%-owned Ferber copper-gold property in Nevada.
Under the agreement, BCE would provide technical services and oversight, leveraging its operational expertise in the region, in exchange for up to a 1% net smelter return (NSR) royalty interest.
The AIM-traded Galileo said it would fully fund the two-phase exploration programme, with BCE also holding an option to acquire an additional 0.5% NSR for $1m before the completion of a feasibility study.
Initial work would include structural and alteration mapping, soil sampling, and geophysics as part of a phase one target generation effort, followed by reconnaissance drilling.
Historical data at Ferber indicated gold grades of up to 2.37 grams per tonne over 4.6 metres and copper grades of 0.83% over 12 metres, along with evidence of other critical minerals such as zinc, bismuth, and arsenic.
The project area encompasses a polymetallic system with historic small-scale production, and the upcoming programme aims to define new structural targets around the Ferber intrusive complex.
"We are pleased to have completed this royalty arrangement with Bronco/EMX, a company that we hold in high regard," said chairman and chief executive officer Colin Bird.
"Their in-country presence, local knowledge and exploration expertise will greatly assist in our initial field programmes."
Bird said the company was "looking forward" to working with them and, if appropriate, to extending the arrangement based on successful exploration progress.
"The Ferber project is ideally located in a major copper-gold Province and the general push towards support for home-based projects in the US is expected to be of considerable assistance to the project."
At 1311 BST, shares in Galileo Resources were up 5% at 0.84p.
Reporting by Josh White for Sharecast.com.