AurCrest Gold Inc. entered a deal to acquire a 2% net smelter returns royalty on the company's Richardson Lake gold property in Ontario for a payment of C$50,000 by May 24.

In addition, the company is undertaking a nonbrokered private placement of up to 10 million working capital units priced at 5 cents apiece to raise up to C$500,000.

Each unit consists of 1 share and a share purchase warrant, while each whole is exercisable to purchase an additional unit for 7.5 cents for three years following closing of the offering. The first closing is expected by May 24, with a final closing anticipated by June 12.

The proceeds from the financing will be used for working capital and to acquire the 2% NSR, AurCrest said May 11.