De Grey Mining Limited (ASX:DEG) is acquiring 80% of six granted...

De Grey Mining Limited (ASXEG) is acquiring 80% of six granted tenements located within 20 kilometres of its proposed plant at the Pilbara Gold Project near Port Hedland in Western Australia.
Its shares were trading circa 9% higher intra-day, at $0.245.
The company has the option to acquire the additional 30 square kilometres of landholding containing high-grade gold exploration targets, with significant gold nuggets found to date by the vendor.
De Grey will initially pay $30,000 cash + 150,000 De Grey shares and will sole fund the exploration during the 4 year option period.
The company can elect to acquire 80% of the tenement on payment of $500,000 cash.
De Grey recently revealed a significant resource upgrade to 1.2 million ounces of gold for the Pilbara Gold Project.
A scoping study had indicated a financially robust development project, based on a 1 million tonne throughput, utilising a new purpose built processing plant.
Importantly, the new increased resources is anticipated to further improve the scoping study financial model.
READ NEXT: De Grey Mining bags $5M from Canadian gold producer Kirkland Lake Gold

Earlier this week, De Grey secured a $5 million investment from Kirkland Lake Gold Ltd (TSE:CRK) via the issue of shares at $0.15 each.
Kirkland Lake is a Canadian listed mid-tier gold producer with a market capitalisation of US$2.7 billion and forecast production of 570,000 – 590,000 ounces of gold for 2017.
The new funds will be used by De Grey for ongoing exploration and development activities at the Pilbara Gold Project