Corvus Gold Inc. said June 6 that it agreed to acquire the Mother Lode gold property in Nevada from Goldcorp Inc., with closing anticipated June 9.

The Mother Lode property is approximately 10 kilometers from Corvus Gold's North Bullfrog gold property, with a satellite mining project and processing facilities being considered for the new property.

Under the agreement, Corvus will issue 1 million common shares to acquire the property, which is also subject to a net smelter royalty in favor of Goldcorp.

A 1% net smelter royalty is payable on production at Mother Lode when the gold price is less than US$1,400/oz and increases to 2% when the gold price is US$1,400/oz or more.

The property covers about 250 acres and hosts historical, noncompliant resources containing 430,000 ounces of gold within 8.5 million tonnes at 1.6 g/t of gold.

"We intend to initiate a substantial exploration and resource development program at Mother Lode this summer," Jeff Pontius, Corvus Gold president and CEO, said, adding, "Corvus Gold is also on track to complete its update of the North Bullfrog resource and preliminary economic assessment study this fall."