GreenTech Metals (ASX:GRE) has entered into a sale and joint venture with Errawarra Resources (ASX:ERW) for two granted tenements and one application for a prospecting license adjacent in Western Australia, according to a Monday Australian bourse filing.

Under the deal, the company will sell 70% of its interest in project tenements while retaining 30% free carried interest to a decision to mine with a AU$100,000 upfront cash payment.

The deal also includes an AU$2 million performance payment to the company at the decision to mine while Errawarra will fund minimum expenditure and all tenement obligations spending AU$1 million over four years.

The shares of Errawarra Resources soared 108% on market close while the shares of GreenTech Metals were down 2%.