Pathfinder Minerals said it had entered entered into a fixed period consultancy agreement with Africa Focus Group until the end of September in relations to a possible deal in Mozambique.
Africa Focus would provide assistance to the company in pursuing completion of a transaction with the owners of Pathfinder Mozambique.
Under that transaction, Pathfinder would take on direct ownership and effective control of the mining concession 4623C.
Africa Focus would be entitled to a conditional £1m fee and Pathfinder said it would consider an request by Africa Focus to use the fee to buy new shares in Pathfinder Minerals.
'We are very pleased to have formalised our relationship with AFG with whom we have been working successfully for a number of months,' chief executive Scott Richardson Brown said.
'I feel confident that we can move forward with them to the successful conclusion of the good faith negotiations that are progressing in Mozambique.'
'The possibility of AFG taking an equity interest in the company in future, we believe, would align their interests with those of our shareholders.'
At 8:01am: (LON:PFP) Pathfinder Minerals PLC share price was +0.03p at 1.28p