The deal also has Gold Road agreeing to pay Montezuma a discovery payment of $7.50 per resource ounce on future discoveries within the area covered by E38/2889.
Gold Road must prepare a resource statement on at least an annual basis and pay the discovery payment on each troy ounce of gold added to the resource within 45 days of the update being finalised.
This transaction provides Montezuma with free-carry on any future discoveries, delivering a potential upside for no risk.
Montezuma now continue to advance its commercialisation activities at the high purity Butcherbird Manganese Project, the Pinnacles Cobalt Project as well as other key portfolio assets.
The company remains well-funded with $4.2 million in cash at the end of June 2017, and listed investments of circa $7 million.