Great Boulder Resources (ASX:GBR) signed a nonbinding memorandum of understanding with Monument Mining, to evaluate the suitability for the processing of ore from Great Boulder's Side Well gold project in Western Australia through Monument's Burnakura mill, subject to availability, according to a Wednesday Australian bourse filing.
The deal provides a pre-emptive right for Great Boulder's ore for toll milling, setting up a framework for the firms to assess the technical, commercial, and logistical requirements for joint operations or toll treatment.
The firms are undertaking scoping studies on their respective operations.
The mill, which is currently under care and maintenance, previously operated at 260,000 tonnes per annum and Monument is considering potentially increasing its capacity up to 750,000 tonnes per annum.
Its shares rose 4% in recent trading on Wednesday.
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