BullRun Capital Inc. entered a letter of intent to purchase DNI Metals Inc.'s mining project in Alberta, known as the SBH or Buckton.

According to a Dec. 23 statement, BullRun plans to complete an IPO or a reverse takeover into a public company with the SBH project and other projects.

BullRun will pay C$400,000 within 120 days of signing a definitive agreement.

BullRun will then sell the project to the public company on or before March 31, 2017, with the new company issuing C$600,000 worth of units to DNI.

Under the deal terms, DNI will have the right to appoint one person to the new company's board.