Located in Sturgeon Lake Greenstone Belt in the Kenora-Patricia Mining District of Ontario, Canada, the properties are spread in 8,784ha area.
Both companies have signed on a definitive property option agreement, which allows Century Energy to acquire the proposed stake using three earn-in options.
Century Energy will pay $2m and $2.5m through its first and second options respectively to acquire 20% interest in each option and pay another $5m in third option to complete 51% acquisition.
The company said that the funds paid through first and second options will cater to the two-phase work program on the property.
The agreement, which is subject to regulatory approval, also calls for financing by Century Energy to fund the first year work program that requires to be closed by 31 October 2012.
