Rover Metals has signed a non-binding letter of intent to acquire all of the issued and outstanding shares of Centennial Mining from a US-based company.

Centennial Mining owns a 100% stake in the Toquima precious metals property in Corcoran Canyon, Nevada, US.

Rover Metals CEO Judson Culter said: “The Toquima Property brings Rover Metals a lower cost per meter precious metals exploration project to offset the somewhat more expensive and seasonal exploration costs of our existing Northwest Territories, Canada assets.

“Additionally, having recently completed our US OTCQB listing we need a US based asset in a mining friendly jurisdiction. The Toquima Property is available for year-round exploration.”

The Toquima gold and silver property consists of 253 contiguous, unpatented mineral claims with an area of about 1,958.6ha.

It is located on the eastern edge of the Toquima Range that is underlain by volcanic rocks of upper oligocene to lower miocene age.

Between 1970 and 2011, a total of 123 core and reverse-circulation holes with an aggregate length of 17,895m were drilled on Toquima. Of this, around 11,500m in 78 holes have been drilled within the Silver Reef Zone.

Completion of the transaction is subject to the execution of a definitive agreement, completion of satisfactory due diligence and receipt of requisite shareholder and director approvals.

“The Toquima Property brings Rover Metals a lower cost per meter precious metals exploration project.”

The transaction also requires all required regulatory, corporate and third party approvals, including the TSX Venture Exchange approval.

The company has not disclosed the deal value.

In January this year, Rover Metals’ technical team identified its drill targets for the Cabin Lake Gold Project which has a historical resource estimate of 100,000t grading 10 g/t Au tested for a strike length of over 100m and to a depth of 70m from the surface.