Errawarra Resources (ASX:ERW) acquired a 70% stake in the Elizabeth Hill Silver project and surrounding tenements in Western Australia, according to a Monday filing with the Australian bourse.

The acquisition includes a 70% interest in the silver rights of the Pinderi Hills project tenement package and 70% ownership of three surrounding tenements, covering a total area of 180 square kilometers, the filing said.

The deal is contingent on meeting conditions precedent, including approvals and joint venture agreements with Alien Metals, and GreenTech Metals, the filing added.

For the agreement with Alien Metals, Errawarra will pay AU$500,000 in cash and issue 44.5 million shares, contingent on AU$2.5 million capital raise and shareholder approval, and will fund exploration costs until a Decision to Mine, after which Alien Metals may opt for a 2% net smelter royalty or contribute to costs.

Under the deal with Greentech, the company will pay AU$100,000 in cash for a 70% interest in additional tenements. The agreement also requires Errawarra to spend AU$1 million on exploration over four years or compensate GreenTech for any shortfall.

Errawarra also plans to raise AU$3 million, through the issue of 111.1 million shares in two tranches, at AU$0.027 per share, a 1.5% discount to the Company's 15 days volume weighted average price, with shareholder approval for the second tranche in May.

Funds raised will support the Elizabeth Hill project, ongoing exploration, and working capital.

Shares of the company rose 108% in recent Monday trade.