GoldeyeExplorations Ltd. said July 11 that it has agreed to a proposaltabled by Treasury MetalsInc. to be bought in an all-scrip deal priced at 6.5 Canadian centsper Goldeye share.

The offer represents a 44.4% premium to Goldeye's closingshare price on July 8.

The company's principal asset is , a high-grade gold projectnear Sandy Lake in northwestern Ontario.

Treasury and Goldeye have agreed to an exclusivity perioduntil Aug. 1 for due diligence and finalizing a definitive agreement. ShouldGoldeye terminate the deal by then, it will have to pay Treasury a C$250,000break fee.

Treasury is providing interim working capital to Goldeye, itsaid in a separate July 11 statement.