Allup Silica (ASX:APS) acquired 100% of the McLaren Valuable Heavy Mineral Sands Project in Western Australia, according to a Monday filing with the Australian Securities Exchange.

Consideration for the transaction includes AU$150,000 in cash, a 1.5% royalty to the vendors, Westover and Wild Side WA, and 2 million options exercisable at AU$0.2 within five years from issue. The vesting condition is a bankable feasibility study and Ilmenite concentrate sales exceeding $500 per ton from the project, the filing said.

The company plans to fund the acquisition through internal cash sources and an additional placement to raise AU$360,000, through the issuance of nine million shares at a price of AU$0.04 per share, according to the filing.

Shares rose nearly 11% in morning trading.