Queenston Mining will sell its 50% interest in the properties located in Teck Township Ontario, Canada, to KL Gold for $60m.

The move follows the signing of a purchase and sale agreement between the companies, for the properties which are currently held under a joint venture (JV) with KL Gold.

Queenston Mining president and chief executive officer Charles Page said the sale of this non-core asset provides the company with funds to progress the Upper Beaver project towards advanced exploration and feasibility.

"The recent positive PEA on the project, based on constructing a 2,000t a day, stand-alone mine-mill operation, outlines robust economics with annual production of 120,000oz of gold and 5.3 million pounds of copper," said Page .

"The PEA estimated the pre-production capital for the project at $240m, and on the JV land sale, Queenston’s cash and short-term investments will amount to approximately $120m."

The all-cash deal, subject to several stipulations prior to conclusion, is likely to be finalised by 3 December 2012.

The company has allocated $35m for exploration and development of its properties, and with forecasted expenditures of $65-$75m for next year, will be well-funded into 2014.

Queenston is a Canadian mineral exploration and development company and maintains strategic 100% owned holdings in Teck Township, adjoining the JV lands including the Amalgamated Kirkland property.