Metalcorp Ltd. said Feb. 1 that it inked a deal with Golden Peak Minerals Inc., granting the latter an option to earn a 100% interest in 32 mineral exploration claims, dubbed the Hemlo East gold property, in Ontario.

Under the deal, Golden Peak is required to make payments totaling C$340,000 and issue 2,250,000 shares to MetalCorp over a three-year period. The company will also incur C$1.8 million in exploration expenditures on the property.

Upon exercise of the option, MetalCorp will retain a 2.5% net smelter returns royalty, one-fifth of which can be repurchased by Golden Peak for US$1 million.

The project is located near Barrick Gold Corp.'s Hemlo gold mine.