Endeavour Silver has signed a definitive agreement with Bravada Gold to earn an 85% stake in the latter’s Baxter gold and silver property in Nevada, US.

Located directly north of Endeavour’s Bruner project in Nevada’s Walker Lane Gold trend, the property comprises 114 unpatented lode claims covering 920 hectares.

According to the deal, Endeavour has the right to explore and the option to earn an 85% interest in the Baxter property.

In exchange, Endeavour will incur exploration and development expenditures of $4.5m (C$5.9m) on the property for a period of five years from the effective date of the agreement.

Endeavour will make annual cash option payments of $100,000, 50% of which may be paid in Endeavour common shares at its sole discretion, to Bravada and incur the exploration expenditures on the Baxter property in trenches.

Upon exercising the option, Endeavour and Bravada will form an 85/15 joint venture.

Bravada Gold president Joe Kizis said: “This potential agreement with a growing, successful mining company like Endeavour Silver is a great, low-risk opportunity for Bravada to piggy-back off of Endeavour’s adjacent Bruner deposit.

“Endeavour benefits from adding potentially high-margin, shallow oxidised gold from the Sinter Target for a modelled heap-leach site on Bruner that is directly south of Baxter’s claim boundary.

“Bravada’s broad portfolio of high-quality gold properties in Nevada continues to receive active interest from potential partners, and the company looks forward to announcing other beneficial deals if and when they mature.”