IGO (ASX:IGO) agreed to withdraw its applications for E52/4528 and E52/4529 in Western Australia, allowing Corazon Mining (ASX:CZN) to apply for exploration tenements over the same ground under exploration license E52/4573, according to a Wednesday filing with the Australian bourse.
Corazon Mining will pay the company a completion fee of AU$35,000 in cash, in addition to the reimbursement of AU$5,984 in application fees, and grant the company a 1.5% net smelter return royalty on all gold extracted and recovered from the tenements, the filing said.
Corazon Mining will also pay the company AU$1 million upon the disclosure of a JORC-compliant mineral resource estimate of at least 100,000 ounces of gold or gold equivalent, per the filing.
IGO shares rose nearly 1% in morning trade Wednesday, while Corazon Mining shares were down 3%.
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