Sarama Resources (ASX:SRR) executed non-binding heads of agreement with Orbminco (ASX: OB1) to acquire an 80% stake and controlling interest in the Mt Venn project in Western Australia, according to an Australian bourse filing on Monday.

As consideration, Orbminco will receive 12 million Chess Depository Instruments in Sarama, with each

instrument representing a beneficial interest of 1 common share in Sarama.

Orbminco granted Sarama a four-month right of exclusivity from the date of the heads of agreement, which will end after the period or the date of execution of a binding agreement, whichever is earlier.

The dual-listed Sarama will make a non-refundable cash payment of AU$20,000 for the right of exclusivity and it has undertaken to make payments for annual exploration license government rental fees worth about AU$39,900 to ensure continuity of tenure for two of the exploration licenses at the project.

The project is prospective for gold, base metals, and platinum group elements. It is currently in an exploration phase and the remaining 20% stake in it is held by Cazaly Resources (ASX:CAZ).