Scorpion Minerals Shares Surge 73% As it Enters Joint Venture Agreement with E79 Gold Mines

Scorpion Minerals (ASX:SCN) entered into an earn-in and joint venture heads of agreement with E79 Gold Mines (ASX:E79) over the Jungar Flats gold project in Western Australia., according to a Friday Australian bourse filing. Scorpion Minerals will be the manager of the project and make an upfront cash payment of AU$100,000 to E79 Gold. Fenix Resources (ASX:FEX), which owns the tenement E51/1681, will have to approve the assignment in relation to the tenement, and Scorpion Minerals, E79, and Fenix will enter into a deed of covenant in respect of it. Scorpion will be granted a right to earn a 51% stake in the project by spending AU$1.5 million on exploration in the first three years of signing the agreement and it may earn an additional 19%, increasing to a 70% interest in total, by spending a further AU$1.5 million on exploration within five years of signing the agreement. The firm's shares surged 73% on market close on Friday.