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MacDonald Mines has transferred the lease which includes the tailings for C$1 but will retain the mineral and mining rights.
Environmental Tailings will be responsible for all costs relating to the processing and rehabilitation of the tailings.
Environmental Tailings has granted MacDonald Mines a 4% net smelter royalty from the sale of any metal extracted from the tailings.
Following the processing of the tailings and the restoration of the area, Environmental Tailings will resell the lease to MacDonald Mines for C$1.
"This transaction helps the company preserve cash while ensuring our focus and efforts remain on exploring our 100% owned SPJ project," MacDonald Mines chief executive Greg Romain said.
"Furthermore, it confirms our commitment as a company to clean up any historical workings which is supported by the government of Ontario."
The past-producing Scadding gold mine in northern Ontario processed a total of 140,000 tonnes between 1987 and 1989. MacDonald Mines acquired the Scadding lease, which includes the tailings, in 2019.
The company is exploring the past-producing mine and other gold and polymetallic structures in the vicinity.
MacDonald Mine's SPJ project is 19,720 hectares, 20 kilometres southeast of the Sudbury Mining Camp in northern Ontario.
