Red Hill Minerals entered into a $6.5 million five-year farm-in agreement with Peel Far West, a subsidiary of Peel Mining (ASX:PEX).

The deal centres on the exploration of the Curnamona Project, encompassing over 1,460km2 across the Broken Hill province of New South Wales and South Australia's Anabama region.

The agreement allows Red Hill to earn a 75% interest in the Curnamona Project by incurring the stipulated exploration expenditure within the farm-in period.

Upon reaching this milestone, a joint venture will be created, with Red Hill as the manager. Once the initial 75% interest is earned, both parties will contribute to funding based on their joint venture interests or opt to dilute their share.