PERTH (miningweekly.com) – The share price of junior Berkut Minerals soared by nearly 40% on Tuesday after the company entered into heads of agreements with various parties to acquire the Tick Hill gold project, in Queensland.

Berkut entered into four binding heads of agreements with Syndicated Metals, Superior Resources, Diatreme Resources and Carnaby Resources to acquire the Tick Hill mine and surrounding acreage.

The acquisition comprises three granted mining leases over the Tick Hill gold mine, an 82.5% interest in 293 km² of tenement area, and a full interest in a further 26 km² of surrounding and regional exploration tenements.

In exchange for the three mining tenements making up the Tick Hill project, ASX-listed Diatreme will be issued with 7.2-million shares in Berkut, and the replacement of Diatreme’s tenement bonds of A$336 844.

The three mining leases are also subject to a gold royalty, which will be payable to MIM Holdings.

In exchange for an 82.5% interest in Syndicated Metals’ Southern Hub tenement portfolio, Berkut will issue the company with 5.1-million shares. Syndicated will also retain a 17.5% free carried interest in the tenements up to a decision to mine.

Meanwhile, Superior Resources will be issued with 2.4-million Berkut shares and Carnaby Resources with 6.4-million shares for their respective holdings, with Carnaby also due six-million five-year options, exercisable at 9c each, and three-million five-year options, exercisable at 10c each.

The Carnaby, Syndicated and Diatreme shares will be subject to a 12-month voluntary escrow period.

“The company is excited to be acquiring this extensive, high-quality brownfields land package in Queensland,” said Berkut MD Neil Inwood.

“Tick Hill was historically one of Australia’s most profitable gold mines with a mined grade of 22 g/t gold for 511 000 oz. There is a well-defined exploration plan for Tick Hill and the broader area, which is being consolidated for the first time in 20 years.”

Inwood noted that Berkut was in a strong funding position to pursue a focused and aggressive exploration programme.

Diatreme CEO Neil McIntyre said on Tuesday that the transaction with Berkut provided the company’s shareholders with the potential for further growth in market value, at zero costs.

“This deal is a win-win for Diatreme and Berkut, giving Diatreme shareholders exposure to Berkut and its promising gold assets in Western Australia and now Queensland, while allowing us to continue our focus on our key heavy mineral and silica sands projects.”

Syndicated MD David Morgan also told shareholders that its near 5% interest in Berkut, and its free-carried 17.5% interest in the Southern Hub tenements, would mean ongoing exposure to the consolidated Tick Hill project, and exploration upside of Berkut’s Western Australian projects.

Meanwhile, Berkut's Peter Bowler and Rob Watkins will be appointed as nonexecutive chairperson and MD respectively, to lead the strategic growth of the company.

Inwood and current chairperson Justin Tremain will remain as a nonexecutive director, along with Paul Payne.

Berkut shares were trading at a high of 12.5c a share on Tuesday, up from an opening price of 9.2c a share.