Pro Minerals (TSX.V: PRM) has sold two mineral claims in the Beardmore-Geraldton gold camp in Ontario, known as the Solarus claims, to Kodiak Exploration for $50,000 in cash and 300,000 Kodiak shares, Pro Minerals said Thursday.
The claims, which extend 160ha, cover a prospective extension to the Milestone gold zone, ten kilometres east of the area of Kodak's current exploration drilling on its Milestone Gold project in the Beardmore-Geraldton camp.
The transaction consolidates Kodiak's land position in the Milestone area, allowing for systematic exploration of multiple gold bearing structures in the eastern portion of the Beardmore-Geraldton gold camp, the company said.
The two claims are subject to a 2% NSR royalty held by a prior owner, and Kodiak can purchase half the royalty for $1.0 million.
At the same time, Kodiak announced it signed an option agreement with Teck Resources that allows Kodiak to earn a 100% interest in the 1,280 ha Adel property, located immediately adjacent to the Milestone project.
The property hosts the western extension of the Klob Shear Zone, host to the Pag North gold mineralized structure, which Kodiak has been drilling since late 2009.
Pro Minerals is a Canada-focused mineral exploration company.