Lefroy Exploration (ASX:LEX) entered into a profit share mining agreement with BML Ventures, granting it an exclusive right to open pit mining at the Lucky Strike Gold Project in Western Australia, according to a Wednesday Australian bourse filing.

The private mining contractor will be appointed as the statutory mine operator, and it will manage all mining activities and approvals, funding all capital and operating costs required for the project.

BML will use its best endeavors to start mining within 18 months of signing, per the filing.

The net surplus cash, calculated after deducting all expenses, will be distributed evenly between the partners.

Lefroy Exploration's shares rose past 10% in recent trading on Wednesday.