Far Resources will become the operator, leaving 92 free to become more active with its other projects, said the latter.
"The company (92 Resources) will benefit from bringing in a financially and technically strong partner to further develop the project, and in the process will become a substantial shareholder of Far Resources with the ability to share in the project’s success," said 92 Resources.
"We have shown that the Hidden Lake project has lots of great potential. Bringing in a partner like Far Resources gives us the ability to develop the project further at no out of pocket cost to us," said Adrian Lamoureux, the chief executive of 92 Resources.
"If the project proves up as well as we hope, and Far Resources exercises its options, we will be a big part of that success through our remaining interest in the project and our share position in Far Resources."
On closing the deal, Far will pay $50,000 cash and issue $500,000 worth of its shares.
To earn 60%, Far must spend $500,000 in exploration within a year. It can then acquire an additional 10% for a total of 70% by issuing $250,000 worth of Far shares and spend $500,000 during the next year on exploration.
It then has two more options of 10% each, so as to earn up to 90%, in each case by issuing additional Far Resources shares to 92 Resources and expend additional amounts on the project within the year after each exercise.
Keith Anderson, chief executive of Far Resources added: “We like the potential of the Hidden Lake project. We think it fits in extremely well with our overall mineral development strategy. We look forward to working with 92 Resources as a partner and we have high hopes for Hidden Lake’s prospects."