Canadian Vendetta Mining Ltd. on Wednesday said that it has inked a deal with Pegmont Mines Limited to acquire its entire stake in the Pegmont Lead-Zinc-Silver Property. 

Pegmont is located in the State of Queensland. The property is situated 25 kilometers from BHP Billiton's world class Cannington silver-lead-zinc mine and 20 kilometers from Inova's Osborne copper-gold mine.

BHP is an Australian mining and petroleum company headquartered in Melbourne. Inova Resources is the Australian-listed exploration arm of Canadian company Ivanhoe Mines, according to its website. 

In a statement, Vendetta Mining said that it has been granted an option to buy an undivided 100% interest in the Pegmont property and associated exploration tenements.

Vendetta Mining will finance the deal through cash payments, stock issuances and exploration commitments. 

Vendetta Mining said that it would pay Pegmont USD3 million in cash in tranches. The mining company would also issue shares to Pegmont with a market value of USD1 million.

Meanwhile, exploration commitments on the property were pegged at a minimum of USD800,000 a year. This would total to a minimum commitment of USD2.4 million, the statement said.