Junior miner Goldcrest Resources Ltd. will option its Gaoua copper-gold permits in Burkina Faso to Phelps Dodge Corp. in exchange for funding to develop the projects.

Goldcrest said Monday it has signed a deal whereby Phelps Dodge Exploration Corp. may earn up to a 70 per cent interest in the Malba, Souhouera and Danyoro permits by funding the projects through completion of a feasibility study.

Phelps may earn a 51 per cent interest by spending $5 million US over three years and paying Goldcrest $225,000 US. It has also committed to spend $1 million US in the first year, with Goldcrest as the operator.

Goldcrest will continue to have the right to explore the properties for gold-only prospects at its own expense.

Goldcrest Resources is a mineral exploration company focused on the Youanmi project in Western Australia and its Malba, Kampti and Souhouera projects in Burkina Faso.

Phelps Dodge Corp. is a U.S.-based miner that produces copper, carbon black, magnet wire and continuous-cast copper rod. It is in the middle of a takeover battle for Canadian nickel giants Inco Ltd. and Falconbridge Ltd., for which it has bid about $40 billion US.