Xtract Resources said it had formed a non-binding agreement with a consortium to jointly undertake exploration works at the Matrix copper and gold prospect in Zambia.
The project was located at Kajevu, Kasempa in the country's north western province and Xtract said it would acquire a 50% stake.
The parties had agreed that the total budget for exploration work would not exceed $1m.
'The iron oxide copper gold exploration potential in Zambia has not been fully explored and several highly prospective opportunities exist,' executive chairman Colin Bird said.
'We have identified the Matrix Project as being high in potential and are currently investigating other areas which possess similar potential.'
'In developing our activities into Zambia, we are providing a country balance and also introducing copper as a commodity hedge against gold.'
'The board of Xtract believes that the fundamentals for copper in the future are stronger than have been experienced for a considerable time.'
At 1:40pm: (LON:XTR) Xtract Resources Plc share price was +0.03p at 0.98p