C3 Metals (CCCM.V) on Tuesday said the company along with certain subsidiary companies entered an earn-in agreement (EIA) with Freeport-McMoRan Exploration, an affiliate of Freeport-McMoRan (FCX) related to C3 Metals' 100%-owned Bellas Gate, Browns Hall and Arthurs Seat Special Exclusive Prospecting Licenses located in Jamaica.

C3 Metals shares rose 21% after the company said Freeport was granted a two-stage option to buy up to a 75% ownership interest in the Bellas Gate Project under the EIA by funding cumulative exploration and project related expenditures of US$75 million.

"Over the last 2.5 years we have gained a tremendous understanding of the geologic potential of the Bellas Gate Project through a systematic approach to our exploration programs. The data we have collected to date suggests the potential for a new and emerging copper-gold porphyry and epithermal belt," said C3 Metals Chief Executive Dan Symons. "It is our view that the geometry of the porphyry prospects identified to date suggests we will require advanced targeting methods and extensive drilling to vector into the core of these systems. We believe Freeport is the ideal party aligned on implementing this strategy, which optimizes the capital risk profile for our shareholders."

Freeport is required to fund US$25 million of exploration and project related expenditures over five years to earn a 51% interest in the Bellas Gate Project, while C3 Metals will remain the operator of the Bellas Gate Project during stage one of the EIA.

At stage two, Freeport will have the option to become the operator and to fund an additional US$50 million of exploration and project related expenditures over an additional four years to earn an additional 24% interest in the Bellas Gate Project.

Shares of CCCM were last seen up $0.065 at $0.37 on the TSX Venture Exchange.