Canamex has purchased Patriot Gold's 30% working interest in the Bruner gold/silver mine for US$1 million in cash.
Patriot retains a 2% net smelter return (NSR) royalty on the Bruner properties, including any claims acquired within a two-mile area of interest around the existing claims.
Additionally, Canamex has the option to buy down half of the Patriot NSR for US$5mln in the next five years.
Canamex's chief executive Mark Billings told investors: "This acquisition consolidates our 100-per-cent ownership stake in the greater Bruner property, and offers our shareholders greater leverage to the exploration upside on the property and an increase in the price of gold."
Meanwhile Patriot Gold's chairman Bob Coale, said: "Consolidation of Patriot's interest in the Bruner project exemplifies our corporate mission of finding partners to develop our projects while maintaining an interest in the properties through net smelter returns.
"We are looking forward to the continued success of the Bruner gold project."
Canamex shares gained 32% to 16 cents.