The property consists of 76 unpatented mining claims, a state of Colorado exploration permit and an exclusive right to a state lease, Allied said. 

Allied was granted the option as part of a deal signed by Cloudbreak Discovery, Tarsis Resources, and Alianza Minerals. 

To exercise the option, Allied would need to incur an aggregate of C$4.75 million in exploration expenditures on Klondike over a period of four years, with at least C$500,000 to be spent before the first anniversary of the closing date. 

Allied would need to make aggregate C$400,000 in cash payments to Cloudbreak and Alianza with pro-rata interest over four years. 

Allied would also need to issue seven million common shares to Cloudbreak and Alianza, and a further three million common-share purchase warrants on the third anniversary of the date of the option agreement. 

The optionors would retain a 2% net smelter royalty, which is subject to a buy-down provision where Allied may, at its discretion, repurchase half of the royalty for C$1.5 million within 30 days of commercial production. 

Allied said that sampling done on the property returned 1.56% copper and 1.4 grams per tonne silver over a 4.6 metre chip sample of bleached, bitumen spotted and altered Jurassic sandstones. 

Allied traded on the Toronto Stock Exchange on February 6 at C$0.23/share, which was up 2% day-on-day. 

The company had a market capitalisation of C$9.22 million.