Midas Minerals (ASX:MM1) signed an option agreement with Chorab Minerals and licensee Hans Hain Haraseb to acquire up to 80% of the South Otavi project in Namibia, close to the location of the Otavi project, which is to be acquired by the firm, according to a Monday Australian bourse filing.

Midas will pay Chorab $20,000 in cash in consideration for a 12-month exclusive option to conduct exploration on and acquire up to 80%. Midas can extend the option period by an additional 12 months by making a further payment of $40,000.

It can decide to exercise the option and earn a 60% interest in the South Otavi project at any time before expiry of the option by paying $40,000 in cash to Chorab.

Historic exploration of the location defined significant untested gold and copper anomalies, while due diligence work by the firm confirmed the presence of copper. It also verified the location of the historic drilling with reported anomalous gold.

It plans to undertake a combination of soil sampling in areas of shallow soil and drilling to further define areas of in situ gold and copper mineralization.