SHARES IN Dublin-based Connemara Mining rose by 22.7 per cent in London yesterday after it announced a joint venture with a Canadian exploration company for its gold licences near Avoca in Co Wicklow.

Connemara, which is led by Clontarf-based entrepreneur John Teeling, has signed a deal with Hendrick Resources, a private Canadian explorer in relation to four licences along the border of Wicklow and Wexford.

Hendrick will spend €500,000 for a 50 per cent interest in the licences. It also has an option to spend the same amount to increase its stake to 75 per cent.

Hendrick can withdraw from the joint venture at any time with its interest reverting to Connemara, a statement from the Irish company said.

Exploration field work is to start immediately and will include airborne and ground geophysics, geochemistry and subsequent drill testing.

The joint venture will focus on the Mine River licence block, which comprises four contiguous prospecting licences covering an area of about 130 sq km. Previous exploration has discovered significant gold occurrences in rocks and rivers in the Mine River area.

Mr Teeling said he was “delighted” with the joint venture deal. “Dale Hendrick, the founder of Hendrick, is a highly experienced, successful figure in Canadian exploration.

“He is of the opinion that a commercial gold deposit remains to be found in southeast Ireland. This is a view long held by the founders of Connemara. A fresh, experienced eye and the application of new and improved exploration techniques, combined with our extensive database, offer exciting prospects.”

Connemara’s share price closed at 11.5 pence on the Alternative Investment Market yesterday. This gave it a market value of £2.41 million.

Connemara holds 33 zinc/lead and gold exploration licences in Ireland. They include a potentially significant zinc discovery at Stonepark in Limerick, which is part of a joint venture with international mining group Teck.