Locksley Resources (ASX:LKY) entered into a binding option agreement with Balmain Minerals, a unit of Sky Metals (ASX:SKY), to acquire a 100% interest in the Iron Duke project in New South Wales, according to a Thursday filing with the Australian bourse.
The deal involves an option fee of AU$100,000 for nine months and an initial consideration of AU$500,000 on exercise of the option, the filing said.
A further consideration of AU$500,000 is also due upon the delineation of a JORC Code-compliant mineral resource of at least 3 million tonnes graded at 1% copper equivalent or higher, or upon sale or transfer of the project, per the filing.
Locksley Resources shares rose 7% in morning trade on Thursday. Meanwhile, Sky Metals shares were up 5%.