Sirius Minerals (LON:SXX) has signed a cultural heritage management agreement (CHMA) with the Bidjara people, paving the way to advance its Adavale potash project.
Shares in the company surged 5 percent to trade at 12.50 pence on the news this morning.
The CHMA with Bidjara, which are the registered native title claimants over the area in Queensland containing the project, establishes a formal framework for the management and protection of aboriginal cultural heritage sites and a basis for expediting exploration activities on the Adavale project.
"We are very pleased to conclude this CHMA with the Bidjara People. It clears the way for Sirius to advance the Adavale Project while protecting areas and objects of significance to aboriginal cultural heritage," said managing director and chief executive of Sirius Chris Fraser.
"The Bidjara People are important stakeholders for the Adavale Project and we look forward to a positive long-term working relationship."
Sirius Minerals Plc holds exploration permits covering over 600 square kilometres (sq km) of adjoining land in the Adavale basin, overlying the Boree Salt Member in Queensland, Australia.
Last year, Boyd PetroSearch conducted a re-interpretation of new and existing data for the Boree Salt Member, calculating that approximately 100 billion tonnes of salt exist within the northern exploration permits, which was double the previous estimate.
Back in March, the company placed over 150 million shares to raise £20 million, most of which will be used to fund a new drilling programme and a series of studies of the York potash project.