Canada-based Canex Metals Inc. signed a letter of intent with a U.S.-based prospector to acquire the Gold Range gold property in Arizona.

The gold-silver explorer agreed to pay US$90,000, spend US$80,000 on exploration over four years and grant a 2% net smelter returns royalty to the vendor.

Canex can purchase back half of the royalty for US$500,000 and the remaining half for an additional US$1.0 million, according to a May 22 release.

The company intends to kick off a surface exploration program in a few weeks focused on defining and tracing the new gold-quartz discovery and identifying additional mineralized zones in the immediate area.

Additionally, Canex is offering a nonbrokered private placement of up to 4.0 million units at 5 Canadian cents apiece to raise up to C$200,000 to fund exploration at the Gold Range property and for general working capital.

Earlier this month, the company signed a letter of intent to acquire the Ace, Echo, Fulton, Red and Beal copper-gold exploration properties in British Columbia from Altius Minerals Corp. subsidiary Altius Resources Inc.