Tanzanian Royalty Exploration Corp. and Tanzania's State Mining Corp. have a definitive agreement for the development of a highly prospective venture in the north-central part of the African nation.

A unit of Tanzanian Royalty Exploration (TRE) will hold a 55 percent stake in the Buckreef Gold Project, the company said Sunday. State Mining Corp. will hold the rest of the interest.

TRE said it has about $30 million in working capital and strong interest expressed on the part of lenders and other financial institutions to fund the project to commercial production.

TRE aims to begin production within 30 months.