Inventus Mining (IVS.V) said Thursday it signed a memorandum of understanding to evaluate the use of McEwen Mining'a (MUX.TO) stock mill for processing of material extracted from Inventus' Pardo gold project in Ontario.

If processing at the mill is feasible, Inventus said it intends to extract and process up to 45,000 tonnes from Pardo over the next 12 months.

Under the terms, McEwen will seek necessary regulatory approvals and process the material in discrete batches, with gold refined and credited to Inventus' account.

The agreement remains in effect until March 31, 2026.

"Discussions with McEwen Mining to process material at the Stock Mill have been very positive and if deemed viable by both companies, would be an exciting step forward for Inventus," said Wesley Whymark, President Invents' president and head of exploration. "The ability to process significant bulk samples at the stock mill would help demonstrate the potential of the project and improve confidence of the gold grade."

Inventus' share price jumped 11.1% on Wednesday to $0.10 on the TSX.