Yukon Gold has agreed to purchase a 75% stake in Bellhaven Copper and Gold’s Cerro Quema project in Panama for nearly $20m.

Under a memorandum of understanding signed between the companies, Yukon will take a 75% interest in Minera, the Bellhaven subsidiary that operates the mine.

Yukon will purchase outstanding shares of Minera and shares from Minera’s treasury for $19.9m.

Bellhaven has given Yukon a 60-day due diligence period on the Cerro Quema Project and Minera during which Yukon will pay Bellhaven non-refundable deposits totalling $400,000 which will form part of the purchase price if a definitive agreement is reached.