Following the ambush and subsequent execution of three miners working for Chalice Gold last month, Eritrea has substantially improved state-provided security for the mining sector.

But the breach was brief with the yellow metal coming back to the safety of the $1,090 level quickly

The Canadian miner's Barbados unit will put up an initial payment of $50m

The diversified miner is planning to develop projects in coal, minerals sands, nickel and copper mining and to expand its interests in the iron ore business using both its own cash and money raised from the markets

The three local governments have agreed to pay for the 10% stake within a year and it is hoped the deal will help resolve a divestment dispute