Galileo Mining announced a landmark joint venture agreement with a subsidiary of Mineral Resources (ASX:MIN).

Under the agreement, Galileo will sell 30% of its lithium rights on the Norseman tenements for $7.5 million, forming joint venture to explore for lithium.

The agreement involves a two-stage earn-in process where Mineral Resources can increase its stake to 55% by funding $15 million of exploration over four years.

Mineral Resources can reach a 70% stake by funding expenditures through to a decision to mine, after which Mineral Resources and Galileo will establish a separate mining joint venture agreement.

Galileo retains ownership of the tenements and rights to other minerals besides lithium within the project area.