Aura Energy Limited's (LON:AURA) share price has skyrocketed this morning after the company announced a joint venture with TSX-listed Chilean Metals Inc.
The deal will see the two companies form a joint venture to further explore Aura's gold, base, and battery metal tenements in Mauritania.
Aura says that these tenements “represent some of the best under-explored greenstone belt targets in the world.”
As part of the joint venture, Aura will vend its Mauritanian gold and base metal licenses into the joint venture company (PubCo), and Chilean Metals will pay four cash payments totalling around $3.3 million (A$4.8 million) before October 2021.
As long as Chilean Metals completes the four payments, both they and Aura will own 50% each of PubCo.
Aura will also receive 1 million shares in Chilean Metals as part of the deal.
After the deal was announced, Aura Energy's Executive Chairman said “Aura has maintained an exceptionally strong belief in these extremely under-explored greenstone belts given the high-quality preliminary gold and base metal exploration results achieved. This substantial funding package from a group of seasoned resource investors/developers will help reveal their true potential.”
As expected, Aura's London listed share price exploded higher after the announcement.
Having closed yesterday at 0.18 per share, they traded over 200% higher before retracing a little where they are now trading at 122% higher at the 0.40 per share mark.
However, they still have some way to go before it can reach its all-time highs.