09:39 AM EDT, 07/04/2022 (MT Newswires) -- CMC Metals (CMB.TO) on Monday said it reached an agreement to option its Terra Nova property in Newfoundland to Highbank Resources (HBK.V) for cash and shares.

The company said Highbank will make staged payments totaling C$60,000 over two years and 1.5-million shares, as well as a 2% net smelter royalty.

The central Newfoundland property is prospective for gold, silver and copper.

"This joint venture with Highbank provides CMC and our prospector partners with the best opportunity to undertake further exploration on the Terra Nova property and thereby add value to our shareholders," chairman John Bossio said in a release.

CMC shares were last seen unchanged at C$0.15 on the TSX Venture Exchange.