The property comprises 21 claim units totalling 336 hectares, located in the Walter and Elmhirst Townships, east of Beardmore, Ontario. The asset is also next to Laurion's Sturgeon River property.
Under the terms of the deal, Laurion has the option to earn a 100% interest in the property in exchange for 70,000 of its shares upon execution of the agreement, and another 430,000 shares plus $225,000 in exploration expenses over a period of three years.
The Walter-Elmhirst project is subject to a 3% net smelter return royalty in favour of Stephen M. Roach, Denis Laforest and Pierre Maillet, the companies said.
Laurion said the objective of the transaction is to encompass the strike of southern parallel extensions of vein trends that are potential prospective horizons for precious metal-rich volconagenic massive sulphide mineralization.
The proposed deal is subject to regulatory approval by the TSX Venture Exchange.
Laurion also said today it has completed a 3 hole drilling program at its recently-acquired Elmhirst property, which consists of 4 mining leases totalling 64 hectares and abuts the eastern boundary of the Sturgeon River.
Laurion, which also holds mineral properties in Churchill County, Nevada, intends to carry out follow-up drilling along the strike length of the anomaly, which extends over 2,000 metres, and to drill the zone down dip, it added.
Vancouver-based Prodigy Gold's main project is the advanced Magino mine project in northern Ontario.