Golden Dory Resources Corp has signed an agreement with joint venture partner Metals Creek Resources Corp to increase its ownership stake in the Gabbro Lake iron ore property in Canada to 70%.
The project is currently operated under a 50/50 joint venture, with Metals Creek as project operator.
Under the terms of the agreement, Golden Dory will become operator of the project and earn a 60% interest by issuing 1.5million shares of the company to Metals Creek and by investing in a $500,000 exploration programme, which will include a minimum of 1,200m of diamond drilling in June 2012.
It can also earn an additional 10% stake by issuing a further 2.5 million shares to Metals Creek and by providing a NI 43-101 compliant resource.
Metals Creek Resources Corp president and chief executive officer Alexander Stares said, "Metals Creek will still maintain a substantial interest in this excellent iron ore prospect which is located in one of the leading iron ore districts of the world.
"Metals Creek will continue to focus its resources on the Ogden gold project in the Timmins Mining Camp as well as MEK's other gold projects."