Ausgold (ASX:AUC) signed a binding agreement to acquire an additional parcel of freehold land for AU$3 million, which is required for the development of its Katanning Gold Project in Western Australia, according to a Wednesday Australian bourse filing.

The deal's full and final settlement is scheduled to occur in November, per the filing. The land has been acquired from a local farming family, unrelated to the Ausgold group.

Ausgold said it is currently undertaking a further optimization of the definitive feasibility study mine plan as a result of a materially expanded freehold tenure position since August.

The company said it will start a multi-rig drilling program from the land acquired pursuant to the August agreement, targeting key areas late this month.