Manitou Gold Inc. said March 21 that it agreed to acquire Argo Gold Inc.'s RockStar gold project in Ontario in a cash and stock deal.
The RockStar property comprises 16 unpatented claims across 2,816 hectares within the Goudreau-Lochalsh Deformation Zone.
Manitou is required to pay C$200,000 and issue 4 million shares priced at 12 cents apiece to acquire the project. Argo is also entitled to a 1% net smelter royalty, half of which may be bought back by Manitou for C$500,000.
The property is also subject to a 2% net smelter royalty in favor of a third party, half of which may be repurchased for C$1 million.
Argo previously signed a letter of intent to sell to the property to an arm's length party for C$700,000.