Aurum Resources (ASX:AUE) said its wholly-owned unit Plusor Global entered into an agreement with Encore Resources Côte d'Ivoire to earn up to an 80% interest in each of two contiguous permit applications, which is expected grow the landholding at its Boundiali gold project in the Ivory Coast, according to a Tuesday Australian bourse filing.
The permit application areas are located between Aurum's existing Boundiali DS and Boundiali South tenements.
Upon signing the agreement, Aurum will grant Encore Resources 2 million Aurum options per permit application. Upon the grant of an exploration license for a permit application, Plusor will earn a 30% interest in that specific license. In consideration, Aurum will issue 2 million of its shares to Encore Resources.
Plusor will be able to increase its interest in a granted license area from 30% to 51% by completing 4,000 meters of diamond drilling within that specific license area. It can further increase its interest in that license area to 80% by either completing an additional 8,000 meters of diamond drilling or incurring a total nominal exploration expenditure of $2.5 million.
Its shares were up 4% in recent trading on Tuesday.
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