Scorpion Minerals (ASX:SCN) entered into an earn-in and joint venture heads of agreement with E79 Gold Mines (ASX:E79) over the Jungar Flats gold project in Western Australia., according to a Friday Australian bourse filing.
Scorpion Minerals will be the manager of the project and make an upfront cash payment of AU$100,000 to E79 Gold.
Fenix Resources (ASX:FEX), which owns the tenement E51/1681, will have to approve the assignment in relation to the tenement, and Scorpion Minerals, E79, and Fenix will enter into a deed of covenant in respect of it.
Scorpion will be granted a right to earn a 51% stake in the project by spending AU$1.5 million on exploration in the first three years of signing the agreement and it may earn an additional 19%, increasing to a 70% interest in total, by spending a further AU$1.5 million on exploration within five years of signing the agreement.
The firm's shares surged 73% on market close on Friday.
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