Nativo Resources (AIM:NTVO) shares gained 5.3% to 0.4p after the company signed a framework agreement with Kuboc to jointly identify and develop gold and other precious metals projects in Peru.
Under the arrangement Kuboc will act as operator, Nativo will fund approved expenditure, Nativo will first recover invested capital before Kuboc takes its 25% interest, and Nativo's initial exposure to review the identified projects is not expected to exceed US$70,000.
The parties have initially shortlisted gold, silver and copper exploration targets across the Ayacucho, La Libertad, Arequipa and Ancash regions at varying stages of development.
"The criteria for project selection will be based on projects being commercially rewarding and able to be in production within 12 months," said Stephen Birrell, Chief Executive Officer.
Kuboc, founded in 2019 and currently operating two mines, is authorised by Peru's Ministry of Energy and Mines for exploration, exploitation, development and beneficiation and brings non‑ferrous mining, transport and construction expertise.
Nativo said the framework is intended to complement its work to progress towards initial ore sales, advance processing capabilities and evaluate its concession portfolio.
