Solara Minerals (ASX:SLA) entered into a binding agreement to acquire 100% of the issued share capital of OD4 Tom Price from its majority shareholders, which holds a 100% interest in seven granted Western Australia exploration licenses covering a total area of 310 square kilometers, prospective for copper and gold, according to a Monday Australian bourse filing.

It plans to conduct drilling at the licenses comprising the Degrussa West project, after obtaining the required approvals.

A condition precedent to completion of the acquisition is that each shareholder of OD4, who is not a party to the current agreement, enter into a share sale and purchase agreement with Solara.

The agreement requires Solara to make a payment of AU$150,000 in cash, excluding AU$20,000, which has already been paid as an exclusivity fee, as well as to issue 1.25 million fully paid ordinary shares in the capital of Solara to OD4's shareholders.

Solara will also issue 1.5 million of its shares, subject to shareholder approval, to OD4's shareholders if Solara achieves a drilled mineralized intersection of a certain grade of copper-equivalent within the area of the tenements in three years from the completion of the sale.