Kali Metals (ASX:KM1) signed a binding agreement with Florance Resources to acquire two tenements adjacent to its Marble Bar project in Western Australia, according to a Tuesday filing with the Australian bourse.

The tenements will expand the project by 19 square kilometers. As per the deal, the mining firm will acquire Florance Resources for AU$30,000 in cash and AU$200,000 worth of shares, the filing said.

Shares of the company rose 6% in recent Wednesday trade.