Mandalay Resources Corp (TSE:MND) revealed that Vancouver based explorer WPC Resources Inc is set to buy its Ulu gold property located in Nunavut, Canada after inking an option deal.
The Ulu lease covers around 947 hectares contiguous to the Hood River property in the High Lake greenstone belt.
A previous mineral estimate put the total measured and indicated resource at 605,000 contained ounces of gold at 7.53 g/t (grams per ton) from 2.5mln tonnes.
Among the terms is that WPC must pay Mandalay C$200,000 within five business days of the receipt of regulatory approval and pay a further C$200,000 on or before May 31 this year.
It will also issue Mandalay with 15 mln shares.