China Kingstone Mining (HKG:1380) entered a memorandum of understanding with Sino-American Energy SpA for a possible acquisition of mining rights related to a gold mining project in southern Chile, a Thursday Hong Kong bourse filing said.

The company has shown interest in seven mining rights representing mining areas of almost 7.4 million square meters. The mining areas are a part of the gold mining project, Pureo Project, located in Mariquina commune, Valdivia Province, Los Rios.

The MOU stands for six months with exclusivity terms, during which the company will do its due diligence and make the final decision.

The marble stones company's shares ballooned 70% on Thursday's close.

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