The joint venture aims to discover high-grade near-surface gold mineralisation that can provide feed for Polymetal's Mayskoye processing plant, which is able to treat sulphide ore through the flotation circuit and oxide ore through the CIL circuit.
Under the agreement, Polymetal will fund a staged exploration campaign over 2020 and 2023, which should result in an initial JORC-compliant mineral resource or ore reserve estimate.
Its total investment is not expected to exceed US$10 million.
Polymetal will earn 25% in the JV by contributing about $300,000 to the share capital with an option to increase its stake to 80% by contributing $900,000 upon completion of the first-year field program in 2020.
It will also retain a five-year option to increase its interest to 100% subject to positive exploration results.
Polymetal CEO Vitaly Nesis said the company's strategy of working with junior explorers was gaining momentum.
"MEN has extensive and varied experience in using advanced state-of-the-art methods of prospecting and grassroots exploration," he said.
MEN, which has a strong track record of prospecting in Finland and Spain, will assume responsibility for prospecting an area of around 83sq.km.
Polyemtal's shares (LSE:POLY) have fallen 1.6% since the start of the year to £8.30, though they have recovered from £7.73 seen in mid-May.