Dreadnought Resources (ASX:DRE) signed a farm-in deal with Canadian mining firm Teck Resources for a tenement within the Bresnahan project in Western Australia, according to a Tuesday filing.

As per the deal, Teck Resources may earn up to a 60% stake at the tenement in exchange for funding AU$1.3 million worth of exploration expenditures in four years, the filing said. It may receive an additional 20% interest by funding AU$2 million of exploration in four years.

Once Teck Resources achieves an 80% stake, the companies will create an 80/20 joint venture, per the filing.

Dreadnought Resources' shares tumbled past 8% in recent Tuesday trade.