Magmatic Resources (ASX:MAG) has announced that Fortescue is set to farm-in on their Myall project and make a cornerstone investment.

An agreement for farm-in and a joint venture has been executed with FMG Resources for the Myall Project.

As part of the deal, Fortescue will invest up to AUD 14 million over the course of six years to acquire up to a 75% joint venture interest in the project.

During the initial farm-in period, which could last up to four years, Magmatic Resources will operate the project.

Additionally, Fortescue is set to subscribe for 75.9 million shares in Magmatic Resources.

The share placement, priced at AUD 0.04884 per share, will raise AUD 3.71 million in funding.

Magmatic Resources is an Australian mineral exploration company.