Legacy Minerals Holdings (ASX:LGM) struck a binding earn-in and farm-in agreement with Aurelia Metals (ASX:AMI) unit Peak Gold Mines covering Legacy's Cobar project in New South Wales, according to a Tuesday filing with the Australian bourse.

Under the first stage of the agreement, Aurelia can earn a 51% interest by funding AU$500,000 worth of exploration within two years. Under stage two, Aurelia is set to earn a further 39% interest by funding an additional AU$1.5 million of exploration within five years.

Once the second stage is complete, Legacy Minerals will retain ongoing exposure to the project through either a 10% joint venture participating interest or a net smelter return royalty on gold and base metals, the company said.

Shares of Legacy Minerals fell nearly 4% in recent Tuesday trade, while Aurelia Metals was about 3% lower.