Black Cat Syndicate (ASX:BC8) agreed with Dreadnought Resources (ASX:DRE) to develop and process ore from the Star of Mangaroon deposit within the company's Paulsens Gold Operation in Western Australia from December to Sept. 30, 2027, according to a Tuesday filing with the Australian bourse.

Under the deal, the company will provide funding up to AU$10 million, manage contractors, and develop the ore from the deposit, the filing said.

If funds exceed AU$10 million, the company and Dreadnought will contribute additional funding equally, the filing said.

Cash flow from the project will also be split in half for the first AU$80 million, the filing added.

Beyond AU$80 million, the cash flow will be split 70% to Dreadnought, with the company receiving the remainder, the company said.

Dreadnought will acquire all necessary permits, approvals, and licenses for the project by April 30, 2026, the company added.