Mining company Chesterfield Resources said that Polymetal International had agreed to invest £2.1 million in the company for a 22.5% stake.
The transaction required approval from Financial Conduct Authority and if approved, would see Polymetal become the company's largest shareholder.
The company also said it planned to raise an additional £400,000 via a private placement of 4.44m shares at 9p per share to new and existing investors in the company.
The influx of fresh funds would help fund the company's its next phase of exploration as it currently completes its first pass drilling and geophysics exploration campaign on its licence district at Troodos West in Cyprus.
A geophysics survey is planned to be carried out over the winter, with a renewed campaign of drilling in the second quarter of 2021.
Under the agreement, Polymetal would receive one board seat for as long as it maintained an interest of more than 15% of the company's voting rights, the company said.
(LON:CHF) Chesterfield Resources Plc Ord 0.1p share price was 0p at 9.45p
(LON:POLY) Polymetal International PLC share price was 0p at 1699.5p