Kapuskasing Gold Corp. said March 31 that it signed a nonbinding letter of intent to acquire the Jumbo copper-cobalt property in Newfoundland and Labrador.

The property comprises 76 claims spanning 1,900 hectares and is contiguous to the previously announced Kings Court project.

The new acquisition aims to consolidate Kings Court, which covers at least 10 known copper/cobalt showings at surface, along with historic drilling, trenching and adits.

Under the terms, Kapuskasing is required to pay C$3,000 in cash and issue 650,000 shares to purchase a 100% interest in Jumbo from the vendor.

The vendor will retain a 2% net smelter royalty, half of which can be repurchased for C$1.0 million.

A formal purchase agreement will follow upon completion of due diligence.