Resource Development Group Ltd. intends to secure a 30% joint venture interest in 36 square kilometers of mining leases owned by unlisted public company Bullseye Mining Ltd. as part of Resource Development's North Laverton gold project.

The company said Sept. 8 that it executed a binding term sheet to secure a 30% interest in a new company for A$15 million, which will hold 100% of the mining leases.

As part of the deal, Resource Development will be responsible for the design, construction and operation of the project and future Bullseye projects.

Bullseye will receive a preferential dividend payment from the new company when production from the project exceeds 250,000 ounces, based on a payment of A$75 per ounce for the subsequent 250,000 ounces.

The project hosts a 276,000-ounce, JORC 2012-compliant gold resource on four existing granted mining leases.

Resource Development Chairman Andrew Ellison will join Bullseye's board after the transaction is complete.

Bullseye recently rejected a A$4 million all-scrip takeover offer from Red 5 Ltd., calling it "opportunistic" and "inadequate."