Tarsis Resources (CVE:TCC) said Thursday that it has signed a definitive option and joint venture agreement for its White River gold-copper-silver property in the Yukon with Canadian mineral explorer Driven Capital Corp (CVE:DVV).
Under the terms of the deal, Driven can earn a 60 percent interest in White River, by making cash payments to Tarsis of $400,000, issuing 2 million shares and spending $4.25 million in exploration on the project - all by January 15, 2016.
Tarsis will retain a two percent net smelter return royalty on any minerals produced from the property. Half of the royalty can be bought by Driven for $2 million.
In January, Tarsis announced it sampled 82.2 grams per tonne (g/t) gold over one metre at the HG Zone of its White River property.
The sample was from a series of hand trenches at the property, intended to define the White River West target. Strong anomalous gold was discovered in nine of the 11 hand trenches completed, with values ranging from 0.01 g/t gold to 214.0 g/t gold.
Additionally, 800 new soil samples were collected and two lines of induced polarization (NYSE:IP) geophysics were completed.
"We are very pleased to have optioned the White River project to Driven, which intends to explore it aggressively," said Tarsis president and CEO Marc Blythe.
"Driven has adequate financing to complete the first year's exploration commitment."
Once the deal receives exchange approval, Driven will issue 250,000 shares and pay $50,000 to Tarsis. The first year's work commitment is $500,000, including not less than 1,500 metres of drilling.
Tarsis said it is helping Vancouver-based Driven with planning a 2012 exploration program.
Once earn in obligations have been completed, a joint venture will be formed to operate the project, the parties said.
Driven is focused on mineral exploration in British Columbia and the Yukon.
Tarsis has nine mineral properties in the Yukon, Canada, and one in Mexico. The company acquires prospective exploration projects when metal prices are low or of strategic value, and vends or options out projects to partners for advancement.
Earlier this year, the company raised an increased $1.2 million from a private placement offering. The funds were to be used for "prospect generation" efforts in the Yukon and elsewhere, as well as for early stage exploration work to upgrade existing projects, and for general corporate purposes.