Lefroy Exploration Ltd. is selling its 100% interest in the Murchison project in Western Australia to Golden State Mining Ltd.

The company will receive A$25,000 in cash, 1.7 million Golden State shares and 800,000 options under the binding deal and will be reimbursed for certain agreed expenses associated with the project.

Lefroy can exercise the options at 25 Australian cents apiece before Oct. 26, 2022, to receive one Golden State share.

Golden State said in a same-day release that the acquisition will add 120 square kilometers to its nearby Cue project, where it recently started a 3,000-meter drilling program.