• Shares of Australia's Sinclair Gold rise as much as 14.4% to A$1.350, marking their biggest intraday pct gain since April 8

• Gold explorer and developer signs binding earn-in agreement with Canada-based mineral exploration firm Medaro Mining Corporation for its Sala silver-zinc-lead project in Sweden

• Adds deal represents up to A$3.4 million ($2.41 million)in potential cash consideration, shares and Medaro-funded exploration expenditure

• Adds transaction converts earlier non-binding letter of intent announced in May into legally binding deal

• Co says it intends to use funds for exploration activities at its Mt Henry Gold Project in Western Australia, others

• About 220,065 shares change hands, about 1.7x the 30-day average

• Stock last down 10.6% with YTD losses of 27.5% ($1 = 1.4092 Australian dollars)

(Reporting by Subhalakshmi Dey in Bengaluru)