Sun Silver (ASX:SS1) executed a binding agreement to acquire the Bayan Springs North project in Nevada from Bayan Mining and Minerals (ASX:BMM), according to a Thursday filing with the Australian bourse.

The project comprises 116 lode claims covering around 9.7 square kilometers on land administered by the US Bureau of Land Management. The transaction is expected to be completed by Aug. 31

Sun Silver will pay Bayan AU$150,000 on the completion date and a further AU$150,000 upon 12 months after completion, both in cash. It will grant Bayan a 1% net smelter return royalty over the acquired claims.

It will also make a contingent payment of AU$500,000, payable in cash or the equivalent number of Sun Silver shares at Sun Silver's election upon the announcement within five years of completion of a drill intersection of at least 20 meters grading 100 grams per tonne of silver-equivalent or greater.

Sun Silver also staked an additional 106 lode mining claims covering around 8.86 square kilometers north-west of the Maverick silver project, also in Nevada, per the filing.

Sun Silver's shares rose about 3% in recent trading on Thursday.