Peloton Minerals Corp. unit SBSL Subsidiary Corp. granted Frederick Private Equity Corp. an option to acquire up to 75% of the 390-acre Silver Bell-St. Lawrence gold project in Montana.

Frederick can own an initial 51% stake within four years by paying US$10,000 annually and spending US$1 million on exploration.

Two years after its first earn-in, Frederick's stake can rise to 75% by paying US$25,000 every year and spending another US$1 million on exploration.

Upon Frederick's earn-in, a joint venture will be formed based on the companies' respective ownership interests. If one party's interest is diluted to 10% or less, it shall give up its stake to the other party in exchange for a 1% net smelter royalty, which can be halved for US$250,000.

The project has an outstanding 2% NSR, which can be bought down to 1%. Peloton said March 18 that it is seeking a buydown option on the remaining claims.