Canada-based exploration company Colt Resources has signed an agreement with Brazilian consulting engineering company Contécnica - Consultoria Técnica to jointly develop the Penedono gold project in northern Portugal.
As per the terms of the agreement, Colt and Contécnica will jointly submit a request for an Experimental Mining License to the Direção Geral de Energia e Geologia for the project, owned by Colt.
Following the approval and grant of the Experimental Mining License, Colt will receive €50,000 from Contécnica.
Contécnica will further invest €2m over a three-year period to secure a 51% stake in the venture.
Colt will contribute its expertise in business, strategic and legal management while Contécnica will bring financial, technical and operational management to the project.
Colt president and CEO Nikolas Perrault said that with the joint venture, the company will be able to significantly advance the Penedono gold project.
"This agreement allows Colt to maintain a substantial ownership in this project while preserving its exposure to its potential upside," Perrault added. "The company will continue to focus the bulk of its internal resources on its advanced stage Boa Fé-Montemor and Tabuaço projects."
Colt has undertaken advanced stage exploration projects in Portugal and owns the majority leases of mineral concessions in the country.
Image: Colt and Contécnica will jointly develop the Penedono gold project in Portugal. Photo: Colt Resources Inc.