WIN Metals (ASX:WIN) has signed a binding memorandum of understanding with Top Global Mining to acquire the Radio gold mine in Western Australia, according to a Monday filing with the Australian bourse.

Under the deal, the company will pay AU$500,000 in cash, including an AU$50,000 deposit, and issue AU$400,000 worth of shares at AU$0.02 each, the filing said.

Deferred consideration includes a stepped royalty of 5% on the first 18,000 ounces produced and a 1.5% royalty thereafter.

The deal remains subject to regulatory and third-party approvals, the filing added.