Cazaly Resources (ASX:CAZ) has entered into an agreement with Dundas Minerals (ASX:DUN) under which Dundas will earn up to an 80% interest in Cazaly's non-core Romano greenfields gold exploration project in Western Australia's north-eastern Goldfields.
Under the deal, Cazaly will receive upfront consideration totalling $500,000, comprising $150,000 in cash and $350,000 in Dundas shares, with potential milestone payments of up to a further $600,000 in cash and $600,000 in Dundas shares upon the grant of additional tenements.
Dundas is also required to spend $2 million on exploration over two years to secure the 80% earn-in.
The Romano Project includes one granted exploration licence and four applications located along the eastern margin of the Yamarna Shear Zone, adjacent to the operating Gruyere gold mine.