Tesoro Gold (ASX:TSO) signed a memorandum of understanding (MoU) with Tecnocap, providing a framework to advance electricity supply technologies for the potential development of the El Zorro project in Chile, according to a Friday filing with the Australian bourse.

The companies will collaborate on evaluating the technical and economic feasibility of providing electricity transmission to the project, including an engineering study, socio-economic assessment, and a conceptual business model for power delivery, the filing said.

The MoU is valid for two years and can be terminated at any time by either party without penalty, according to the filing.