GTI Resources Ltd. entered an option and lease agreement with Poseidon Nickel Ltd. regarding three tailings dams at the latter's Windarra nickel-gold property in Western Australia, as well as three gold mining exploration leases.

GTI is planning to construct a gold tailings treatment plant to recover gold and other minerals hosted within the North, Central and South tailings dams at Windarra, according to its Jan. 27 statement.

The tailings host indicated resources containing 183,000 ounces of gold within 11 million tonnes grading 0.52 g/t of gold, while the North and South dams host probable reserves containing 101,580 ounces of gold within 4.4 million tonnes grading 0.72 g/t of gold.

The company plans to update the resource and reserve estimates.

GTI will also have the rights to 80% of the three mining exploration leases in Laverton, with Poseidon free carried to a bankable feasibility study. The three properties will also be subject to a 1% gold royalty. Drill plans are underway.

The company's option will expire if it fails to secure funding by March 28, with a shareholder purchase plan and debt negotiations in the works.

Consideration comprises a total of A$3 million, with a final A$1 million payment due 90 days after a mining license is issued for the Windarra tailings project.

In connection with the deal, which is subject to various conditions including due diligence, GTI plans to appoint two new directors with relevant technical expertise.