Barrick Mining (B) signed a definitive earn-in agreement with GFG Resources for an earn-in transaction on the latter's Pen gold project in Ontario, Canada, GFG said Tuesday.

The deal allows Barrick to earn an initial 60% stake in the Pen project after completing 1.2 million Canadian dollars ($870,000) in cash payments to GFG, funding about CA$17.7 million in project expenditures, and delivering a National Instrument 43-101 technical report on the project, GFG said.

The report should establish a mineral resource of at least 1.5 million ounces of gold or gold equivalent within six years, the company added.

The agreement also allows Barrick to increase its stake in the Pen project to 70% by solely funding a preliminary economic assessment and to 80%, subject to certain conditions, GFG said.