Under a qualifying transaction, Green Swan will acquire up to a 70-per-cent interest in two mining sites located around James Bay, known as RiverBank and Broke Bank.
The transaction will lead to a joint venture and take place under two options: the first one providing for a 51-per-cent interest, and the second adding a 19-per-cent interest.
Green Swan will earn its portion of the 51-per-cent interest by issuing 1,500,000 shares, 750,000 share warrants and $25,000 in cash, as well as spending $1 million on exploration expenses.
Should Green Swan choose to extend its interest to 70 per cent, it will need to spend an additional $1 million for exploration, the firms stated.
The agreement replaces a previous letter of intent signed in September.