Mongolian exploration company Xanadu Mines has signed a definitive agreement to acquire 90% stake in the Oyut Ulaan copper-gold porphyry project from Temujin Mining in a cash-and-stock deal.

As per the terms of the agreement, Xanadu will make a payment of $600,000, as well as issue 5,000,000 of its shares.

Further, the company is liable to issue additional performance share options upon recording 900,000 tons of contained copper equivalent JORC resource at the project.

Xanadu CEO George Lloyd said "Xanadu and Temujin have worked closely together to reach a sustainable agreement that will allow both parties the opportunity to unlock value at the highly prospective Oyut Ulaan copper-gold porphyry project."

The company has gained around 25% stake in the project in line securing e Oyut Ulaan mining license.

The conclusion of the transaction is subject to approval by Xanadu’s shareholders and the Government of Mongolia.