Olivut Resources Ltd. signed an option agreement with Talmora Diamond Inc. to earn a 50% interest in the latter's Horton diamond project in Canada's Northwest Territories, according to separate July 6 releases from the companies.
Under the terms, Olivut will pay C$200,000 and spend C$1.2 million over a two-year period. It will also serve as operator of the project.
Olivut is planning a summer field season on the property, while follow-up drilling will be launched to test multiple targets over the next several months.
Talmora has been unable to conduct meaningful exploration on Horton due to a lack of funding during a prolonged negative market environment.
Meanwhile, Olivut said it raised C$1.6 million from a private placement to fund exploration activities on Horton and on its HOAM diamond project, also in the Northwest Territories. The proceeds will also go toward general corporate purposes.
Several targets are drill ready on HOAM and a detailed survey is proposed for the remaining regional geophysical targets.