Beaufield Resources Inc. (TSX-V:BFD) is optioning out half of its Casa Berardi gold mining property in Quebec to a B.C.-based junior mining firm.
Ottawa-based Beaufield said Tuesday that Actus Minerals Corp. has received TSX Venture Exchange acceptance for their option agreement, which will see Actus issuing an aggregate of 1.25 million common shares to Beaufield in exchange for the 50-per-cent interest.
Actus will also need to spend $650,000 on exploration work over a three-year period and pay a two-per-cent net smelter return fee to the local company if the property begins producing gold, as part of the pact.
The B.C. company will be able to buy back half of that NSR for $1 million at any time, Beaufield said.
The Casa Berardi project consists of two claim blocks of 141 claims covering an area of 7,918 hectares in northwestern Quebec.
The property adjoins the northern boundary of a another gold mining project operated by Aurizon Mines that’s expected to produce approximately 160,000 to 170,000 ounces of gold between 2011 and 2013.
Beaufield noted in its release that Actus has already issued 300,000 common shares in connection with the deal.
Shares of Beaufield were trading at 40 cents each on the TSX Venture Exchange at 11:49 a.m., while Actus’s stock was worth 10 cents, making the share portion of the agreement worth about $125,000.