Pantoro Ltd's stock soared 5.05% during intraday trading on Thursday, following the company's announcement of a significant partnership agreement for its gold mining operations.

The Australian gold miner has entered into a partnership agreement with Mega Resources and Bain Global Resources for the high-grade Rama Open Pit in Western Australia. According to the company filing, Pantoro will advance up to AU$20 million to fund the second stage of the Rama Open Pit mining operation, with the funds secured by a first-ranking interest over project tenure.

The agreement includes an exclusive option for Pantoro to mine and develop the high-grade underground mine beneath the open pit through a profit-sharing arrangement. Mega Resources expects to deliver approximately 115,000 tonnes at 4.7 grams per tonne gold, with a minimum delivery obligation of 17,700 ounces. Pantoro will pay Mega between 70% and 80% of the value of reconciled gold produced, depending on ore grade.