Kalamazoo Resources (ASX:KZR) has acquired the Xanadu Gold project in Western Australia from Platina Resources (ASX:PGM), according to a Monday filing with the Australian bourse.

Under the deal, subject to shareholder approval, the company will issue 1.3 million shares to Platina at AU$0.12 per share for proceeds of AU$150,000. Without approval, the payment will be made in cash, the filing said.

The company will also pay AU$500,000 to Platina if it achieves a resource of not less than 250,000 ounces at greater than 0.5 grams per tonne grade gold at any of the project's tenements within 5 years, the filing added.

Platina will also receive a 1% net smelter royalty on gold extracted from the project's tenements, the company said.

Shares of the company rose 4% in recent Monday trade, while shares of Platina Resources fell 4%