BTU Metals Corp. said Oct. 17 that it agreed to purchase two gold prospective properties in Ontario from arm's-length sellers.

The properties, called Dixie Halo South and Dixie Halo Southeast, are near Great Bear Resources Ltd.'s Dixie gold project in the Red Lake district.

Under the terms, BTU must issue 12 million shares and spend C$2.5 million on the properties over a two-year period. Each vendor will receive a 2.5% net smelter royalty, 1% of which may be bought back by the company at any time for C$2 million.

Extensive work has been carried out on the properties over the past 10 years, according to the statement.