Fireweed Zinc Ltd. secured an option from Constantine Metal Resources Ltd. and Carlin Gold Corp. to buy three properties — MC, MP and Jerry — covering 624 claims in Canada's Yukon Territory, according to a March 27 news release.
The claims were staked in 2011 as part of a joint venture between Constantine and Carlin.
Under the terms, Fireweed will pay a total of C$500,000 and issue 300,000 shares over three years. The company will also make an additional payment of C$750,000 upon producing an indicated resource of 2.0 million tonnes on the optioned properties.
The joint venture partners will also retain a 0.5% net smelter return royalty on base metals and silver and a 2.0% net smelter return royalty on all other metals. All option payments and royalties will be split 50-50 between Constantine and Carlin.
The two companies control an additional 10 properties, totaling 1,835 claims and covering about 37,700 hectares in Yukon's Macmillan Pass area, which are available for sale or option.
In a separate same-day release, Golden Ridge Resources Ltd. granted Fireweed an option to purchase its North Canol property, also in Yukon, in exchange for cash and share payments.
Fireweed is required to pay a total of C$500,000 and issue 450,000 shares in stages over three years on TSX Venture Exchange approval. Golden Ridge will be entitled to a further C$750,000 once an indicated resource of at least 2.0 million tonnes is defined.
Golden Ridge will also retain a 0.5% net smelter return royalty on base metals and silver and a 2.0% net smelter return royalty on all other metals. Fireweed will have the right to purchase half of the royalties for C$2 million at any time before commercial production starts.
The North Canol property comprises two concessions covering 12,700 hectares and is near the western border of Fireweed's Macmillan Pass zinc project.