The Dreadnought Resources Ltd (ASX: DRE) share price is stretching up in early afternoon trade on Tuesday.
Investors are rallying the ASX resources share following a company announcement on its Mangaroon project in Western Australia.
At the time of writing, the Dreadnought share price is up 9.52% to 12 cents.
Options exercised over Mangaroon
In a lengthy update, the resource explorer first advised that First Quantum Minerals Limited (TSE: FM) has exercised its earn-in option over the Mangaroon project.
"First Quantum has funded the option period and can now earn an initial 51% interest by funding $12 million of expenditure by 1 March 2026," Dreadnought said.
The agreement covers the base metal rights over five tenements located at the site.
Additional terms state that First Quantum may withdraw at any time during the earn-in phase with 0% interest; and that First Quantum must pay Dreadnought $150,000 by 30 September 2022.
A joint venture (JV) will then be formed if and when the earn-in requirements are satisfied.
First Quantum may elect to increase its interest to 70% up until a decision to mine. This reverts to a 49% interest if First Quantum decides to stop its funding expenditure.
What else did Dreadnought announce?
In a further possible boost to the Dreadnought share price, the company said nickel copper [Ni-Cu] sulphide mineralisation has been intersected in nine out of 12 recently completed reverse circulation (RC) holes at the site.
Assays from the drilling program are expected over the next month.
Speaking on the results, Dreadnought's managing director Dean Tuck said the company was "looking forward" to working with First Quantum:
The potential of the money intrusion to host significant, highgrade Ni-Cu-PGE mineralisation has been underscored with nine out of twelve drill holes intersecting disseminated to nettextured Ni-Cu sulphides along both sides of a bladed to funnel shaped mafic intrusion.
With only a handful of relatively shallow holes drilled to date, the Dreadnought-First Quantum team has confirmed a large scale, fertile Ni-CuPGE system.
In the past 12 months, the Dreadnought share price has lifted 160%. It is also up 180% this year to date.
