Echelon Resources (ASX:ECH) executed a binding terms sheet with Mosman Oil & Gas to purchase a 100% interest in an onshore exploration permit in the Amadeus Basin in the Northern Territory for AU$400,000 in cash, according to a Wednesday Australian bourse filing.
The permit is adjacent to Echelon's Mereenie gas field.
Mosman retains a 5% helium and hydrogen royalty.
The deal is subject to entering into a formal sales and purchase agreement and regulatory approvals, the filing said.
Echelon Resources' shares rose over 7% in recent trading on Wednesday.
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