The company said it had reached agreement with former earn-in partner Ethos Gold, which was renouncing all the precious metal rights in return for 6.5 million Nevada King Gold shares. 

"At the direction of Dr Quinton Hennigh and Lewis Teal, Ethos has spent two years and over C$2 million advancing Iron Point's gold targets," Nevada King founder and CEO Collin Kettell said.

"With gold prices poised to break new records, we feel the time is now to use Nevada King's strong technical team to fast-track our exploration efforts."

Hennigh, who was appointed to Nevada King's board last month, said there was potential "for a very large Carlin system at Iron Point".

The company formed last month through Victory Metals' plan of arrangement with private company Nevada King Mining, backed by merchant bank Palisades Goldcorp which was also founded by Kettell.

Victory Metals had previously focused on Iron Point's vanadium potential. 

Ethos president Alex Heath said the company was pleased to conclude the Iron Point transaction, saying it allowed the company to maintain upside in Iron Point through its interest in Nevada King, while also gaining exposure to a portfolio of projects on Nevada's Battle Mountain trend.

Kettell said in April that Nevada King Gold had more than $20 million in cash and was planning to drill four of its district-scale projects this year.

Nevada King Gold shares (TSXV: NKG) rose to a fresh peak of 84c intraday before closing up 22.6% to 76c, to value it about $151 million (US$125 million).

Ethos Gold shares (TSXV: ECC) gained 11.1% to 20c, a midpoint in its one-year range, capitalising it about $24 million (US$20 million).