Western Gold Resources (ASX:WGR) signed a toll milling agreement with Wiluna Mining to treat gold-bearing ore from its Gold Duke project in Western Australia, subject to a deed of company arrangement, according to a Monday filing with the Australian bourse.

The agreement involves hauling ore to Wiluna Mining's Matilda processing plant for a 24-month campaign starting June 13m with an option for Wiluna to extend for a further six months, the filing said.

Western Gold Resources shares fell 1% in afternoon trade Tuesday.