Minotaur Exploration is buying into 150sq km of gold prospective ground 180km south of Townsville.

It has signed a binding terms sheet to acquire the Pyramid tenement package from Avira Resources.

Minotaur will make an option fee payment of $25,000 to Avira Resources for a 60 day exclusivity period in which to complete its due diligence.

Should the deal proceed Minotaur would pay $150,000 cash (including the option fee) and allot $150,000 in shares in return for final transfer of titles.

It would pay a further $150,000 in cash or shares upon certain milestones, and a 1.5 per cent royalty on the first 50,000oz Au produced.

Minotaur said it considered the West Pyramid area had potential to offer short-term exploration rewards building on historical work, including drilling, that defined several gold camps along 8km of fault corridor.

This includes the Gettysberg prospect, where drilling outlined substantial gold mineralisation along more than 500m of strike.

The East Pyramid Range is less advanced with only 9 holes drilled (none in the last 20 or so years) over an area 4km x 2km thought by Minotaur to offer potential for Intrusion Related Gold Systems (IRGS) similar in style to other well-known gold deposits in the district such as Mount Leyshon and Mount Wright.

News of the Pyramid deal comes as a 2000m drilling campaign proceeds at the Eloise JV tenements in the Cloncurry region (a joint venture between Minotaur and OZ Minerals).

The four-week program will test the Big Foot and Seer targets.