The deal is for the Savinac and Bacevica exploration licence in the southern portion of the Timok magmatic complex.
"This agreement is our third partnership in Serbia, which reflects the continued industry interest in Timok, the Tethyan Belt and demonstrates the prospectivity of Mundoro's land package within this region," said Teo Dechev, president and chief executive at Mundoro.
She added that the company had around C$4.6mln (US$3.5mln) in the treasury, as well as an earn-in agreement with JOGMEC for the Timok North Projects, and now an earn-in agreement with Freeport for the Freeport-Mundoro JV project, and an option agreement with a private company for the Saje Project in Bulgaria.
"Realising value for our mineral property portfolio of over 10 licenses with multiple targets on various licence is one of our corporate priorities," she added.
Regarding this joint venture, Freeport has an option to earn, over two phases, up to a 75% interest in the Freeport-Mundoro joint venture by sole funding expenditures of up to US$45mln (C$59.2mln).
In the first phase, the major has the right to earn 51% by spending US$5 million (C$6.6 million) by the third anniversary of the agreement.
Timok is home to the Cukaru-Peki deposit and the state-operated producing mines (the Bor copper porphyry underground mine and the Veliki Krivelj copper-gold porphyry open-pit mine).
The Savinac license is a 90 sq km area 15 km southwest of the Bor Mine. The property contains a significant area of hydrothermal alteration covering 14 sq km elongated north-south area which hosts epithermal and porphyry target.
Within the alteration, exploration has identified the Tilva Rosh epithermal gold target which contains 12 m (meters) of 30 g/t gold and 171 g/t silver.
Bacevica licence totals 148 sq km and is located directly south of the Savinac licence.
Mundoro shares in Toronto shot up nearly 30% to C$0.155 but were earlier up 40%.