South American-focused mineral resources exploration firm Horizonte Minerals has signed a $5.3m exploration alliance with international miner AngloGold Ashanti.
The alliance is to discover gold mineralisation in Brazil and their subsequent development.
According to the terms of the deal, AngloGold will fund the initial work programmes while Horrizonte will offer operational and technical management.
AngloGold will provide an initial cash commitment of $900,000 in the first year, followed by $1.4m and $3m in the two subsequent years.
The first year spend will help finance prospecting in target areas and possible tenement applications.
AngloGold will hold 51% stake in all new projects defined while Horizonte will own the remaining 49%.
AngloGold has an option to develop new discoveries to pre-feasibility stage in return for an additional equity interest.