Canadian miner Terrax Minerals has entered into an option to acquire a 100% stake in the Blackfly gold property in north-west Ontario.

TerraX can gain total ownership over a four-year period by making option payments totalling C$100,000, issuing 280,000 shares and funding exploration work for C$179,200.

The Blackfly property is located on the western edge of the Marmion Batholith, which contains a number of phases, varying from tonalite to quartz diorite.

The vendors will retain a 2.5% net smelter royalty, of which 1% can be bought by TerraX for $1,000,000.

The vendors will also get an annual pre-production royalty of $10,000, effective 2 July 2013.