Rosita Mining Corp. said Aug. 14 that it entered into a binding letter of intent to acquire the Marilyn Three project in Newfoundland and Labrador.

The property consists of 104 claim blocks covering about 2,600 hectares and is on trend with Sokoman Iron Corp.'s recently announced discovery hole at the Moosehead gold project.

Sokoman released a drill result of 11.9 meters grading 44.96 g/t of gold at Moosehead, triggering a string of acquisitions in the area.

Under the terms, Rosita will pay C$35,000 within 24 hours of deal signing and issue 2.5 million shares upon receiving regulatory approval. The company will also reimburse the staking costs.

The vendors will retain a 2% net smelter royalty on the property, half of which Rosita can repurchase for C$1 million.