Cadillac Ventures Inc. said Dec. 9 that Northern Fox Resources Inc. secured an earn-in option to acquire up to 61% of its Thierry polymetallic project in Ontario.

Northern Fox has to pay Cadillac an amount of C$300,000 to Cadillac following financing, to have the right to earn a 51% stake in the property. It also has to issue 10.0 million shares to Cadillac following the financing.

Northern Fox will issue to Cadillac a C$1.3 million note secured by a first charge against its interest in the property.

The note will be retired proportionately in three stages, with the first amounting to C$375,000 on the completion of the C$1.3 million work program within 12 months of the financing closing date.

The second tranche, amounting to C$500,000 will be retired on the delivery of a feasibility study by Northern Fox within 12 months of the closing date of the financing.

The last tranche, amounting to C$375,000, will be retired on the earlier acceptance of an environmental study of 36 months from the closing date of the financing.

Upon gaining a 51% stake in the property, Northern Fox will have the option to earn an additional 10% in Thierry by spending a further C$2.0 million over two years, after which, a joint venture between the two companies will be formed.