Exploration company Chrysaor is to increase its stake in the Spanish Point licences off the west of Ireland to 60%.
Providence Resources operates both of the licences involved, and its stake will fall from 56% to 32% under the deal. The stake of the other partner, Sosina, will also be reduced..
Chrysaor is exercising a previously agreed option to increase its stake in the project in return for drilling two appraisal wells.
As part of the option, there will be a cap on Providence's and Sosina's financial exposure to the drilling.
'The exercise of this option by Chrysaor is further validation of the significant potential of the Spanish Point project and adjacent acreage,' said Providence CEO Tony O'Reilly.
Ormonde joint venture on gold prospect
Meanwhile, Ormonde Mining has decided to separate its holdings in the Salamanca and Zamora areas of Spain into gold-tungsten and gold-only prospects. These will be funded separately.
Ormonde has entered into a joint venture agreement with Aurum on the gold-only prospects.
Under the deal, Aurum can earn a 60% interest in two permits in the Zamora province and a 54% interest in a further two permits in the Salamanca province by spending €500,000 on exploration activities over an 18-month period.
