Argo Gold Inc. agreed to acquire mineral claims adjacent to its Woco gold project in Ontario from Rubicon Minerals Corp.

The company will issue 500,000 common shares to Rubicon and grant a 2.0% net smelter return royalty on the claims, with half of the royalty entitled to a third party under an existing agreement.

The three mineral claims, covering 384 hectares, include the Northgate gold project and will increase Argo's project area to 23 mineral claims covering 704 hectares in the Birch-Uchi Greenstone Belt.

The acquisition is subject to regulatory approval, according to an Aug. 8 release.