Bryah Resources (ASX:BYH) signed a binding option term sheet with Globex Mining Enterprises to acquire the Golden Pike gold project in Canada for a fee of CA$20,000, with a term of two months to complete due diligence, according to a Wednesday Australian bourse filing.
The firm has sufficient funds on hand to make required consideration payments and begin exploration.
The project has access to established infrastructure, including ports, roads, and power derived from renewable sources.
If the sale proceeds, the consideration will be a cash payment of AU$80,000, as well as AU$200,000 worth of Bryah fully-paid ordinary shares on execution of a formal sale contract. It will also make further cash and equity payments for up to three years after the execution.
Bryah will pay a 2% gross metal royalty for the production of the first 20,000 ounces of gold from the claim and a 3% gross metal royalty past 20,000 ounces of gold.
It will also fund a minimum of AU$3 million in exploration expenditure on the claim.
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