James Bay Minerals (ASX:JBY) agreed to fully acquire the Independence gold project in Nevada, US under an earn-in deal.

Independence, which consists of 14 unpatented mining claims and 84 unpatented mill sites, is a joint venture between Battle Mountain Resources, which holds a 51.54% stake, and Americas Gold Exploration, which holds the remaining 48.46% stake, according to a Monday filing with the Australian bourse.

The transaction comprises an upfront consideration of 16.3 million shares at a deemed price of AU$0.15 apiece, or about AU$2.4 million, for the initial stake of 51.54% held by Battle Mountain Resources. The miner has the right to earn the remaining 48.46% held by Americas Gold Exploration over a two-year period.

James Bay Minerals will grant Americas Gold Exploration a 2% net smelter return royalty upon the acquisition of Americas Gold Exploration's interest in Independence. Half of the royalty can be repurchased for $4 million in cash or shares.

Initial earn-in commitments will be funded by a AU$1.5 million placement of 10 million shares at AU$0.15 apiece, subject to shareholder approval.

The acquisition and placement are subject to shareholder approval at a meeting to be held on Nov. 29.

The company's shares surged 65% in recent Monday trade and earlier hit a new 52-week high.

Price (AUD): $0.33, Change: $+0.13, Percent Change: +65.00%