The joint venture agreement requires approval from the Portuguese Ministry of Economy and Labour through the Direção Geral de Energia e Geologia (DGEG).
Under the terms of the deal, the partnership will submit a request for an experimental mining license to the DGEG for the gold project, owned by Colt Resources.
After the approval and grant of the license, Colt Resources will receive an amount of €50,000 from Contécnica, which will further invest €2m across a three year time period.
Following the investment, Contécnica will earn 51% ownership and Colt Resources will retain 49% stake in the joint venture.
Colt Resources president and CEO Nikolas Perrault said the deal allows the company to advance its Penedono Gold Project.
"This agreement allows Colt to maintain a substantial ownership in this project while preserving its exposure to its potential upside," said Perrault.
"The Company will continue to focus the bulk of its internal resources on its advanced stage Boa Fé-Montemor and Tabuaço projects."
