Cortona Resources has entered into a memorandum of understanding (MOU) with underground mining services firm GBF Mining and Industrial Services to mine its high-grade Dargues Reef gold deposit in New South Wales, Australia.

Under the MoU, both the firms will contribute to mine planning and mine management, based on an incentive scheme.

As part of the incentive arrangements, GBF is expected to receive between $1m and $2m worth of shares in Cortona, to be finalised at the date of execution of the binding agreements.

Cortona Resources’ managing director Peter van der Borgh said that as soon as box cut and portal are in place, the company will focus on underground development.

The MoU is subject to Cortona securing the necessary environmental and planning approvals from the New South Wales and federal governments.