Terra Metals (ASX:TM1) has entered into an option agreement to fully acquire mining firm HRM Exploration, adding four exploration licenses adjacent to the Dante project in Western Australia, according to a Wednesday filing with the Australian bourse.

The binding agreement includes a 12-month exclusive option, with Terra having paid a non-refundable option fee comprising 8.3 million fully paid ordinary shares, the filing said.

If exercised, the acquisition will include 7.5 million shares at settlement, plus deferred shares tied to drilling results and share price milestones, the filing added.

The acquisition is conditional upon shareholder and regulatory approvals, with settlement expected to occur by January 2026, the company said.

Terra Metals' shares rose 3% at market close.