55 North Mining Inc. said Aug. 8 that it agreed to sell its 50% interest in the Tully gold mining claims and mining lease in Ontario to Havilah Mining Corp. unit Havilah Mining Canada Ltd.

Under the terms, Havilah is required to pay C$200,000 in cash to settle outstanding litigation between 55 North Mining and a former employee and waive the company's outstanding liabilities owing to Havilah of about C$970,552.

Concurrent with deal closing, 55 North Mining is required to complete a nonbrokered private placement of 3,333,333 post-consolidation shares to Havilah, priced at 6 cents apiece, for a total of C$199,999. Havilah currently holds around a 24.57% interest in 55 North Mining.

The transaction is expected to close by Sept. 30.