Under the deal’s terms, which includes a A$100,000 (US$75,700) reimbursement payment and net smelter royalty, the producer will receive gold rights for the 563-acre (228ha) property. Specifically, CIO will receive a royalty equivalent to 4% of the net smelter return from sales, increasing by 2% once removal and sale exceeds 20,000oz.

There is also an outlined pre-paid royalty of A$250,000 once mining operations commence.

CIO said trial mining should begin by the end of this month and extend through April 2018. The mining plan calls for extending the depth of the property’s current open-pit by about 20m. Dewatering and access redevelopment are currently occurring at the pit.

“This revitalisation of the Eureka project will allow significant cost reductions in future exploration drilling and allow for an expanded Eureka operation in the short term,” president and CEO Brett Hodgins said. “This transaction allows a focused exploration campaign on our higher priority exploration targets.”