Terramin Australia, a mining company, has inked a binding agreement with Maximus Resources to acquire the high grade Bird-in-Hand gold project and additional prospective Adelaide Hills exploration tenements.

The Bird-in-Hand project located around 30km from Terramin’s existing mining and processing facilities at the Angas zinc mine houses resources of about 598,000t at 12.3 g/t gold for 237,000 ounces of gold.

As per the terms of the agreement, Terramin will pay Maximus A$3.5m ($3.21m) cash, and 25-million shares as well as a 0.5% royalty on future gold production.

Terramin CEO Martin Janes said that the company is in a strong position to operate Bird-in-Hand gold project with experience of operating Adelaide Hills places backing Terramin.

It is our intention to work with the local community to ensure the best outcome to promote regional benefit with minimal impact," added Janes.

"Our focus will be on working with the various government agencies and local stakeholders to obtain approval and generate local employment opportunities."

Maximus, meanwhile, is intending to use the cash gained from the sale to continue its existing base metals and gold exploration programs. Further, the company is seeking joint ventures to restart exploration on the Billa Kalina tenements in South Australia.