White Cliff Minerals Ltd. said Aug. 12 that it executed an agreement with Lorikeet Resources Pty Ltd. wherein the latter may acquire an up to 80% interest in tenement E38/2693, or the Ironstone gold project, within the Merolia project.

Lorikeet, which agreed to pay an option fee of A$15,000 in cash, may earn 50% interest in the tenement by defining inferred resources of 75,000 ounces of gold within three years, and an additional 30% interest by defining indicated resources of 100,000 ounces of gold within five years.

Lorikeet shall shoulder the exploration and development expenses prior to decision to mine. Following a decision to mine, While Cliff may choose to contribute to a portion of the expenses associated with the development, or give notice opting to dilute its participating interest to a 3% net smelter royalty on all minerals extracted and sold from the tenement.