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May 19, 2010 (FinancialWire) — Aurizon (AMEX: AZK) (TSX: ARZ) said it has entered an exploration joint venture with Typhoon Exploration Inc., on the Fayolle project, which is located 10 kilometres north of Aurizon's Joanna project in Quebec, Canada.

The property comprises 39 mining claims 100% owned by Typhoon covering 1,373 hectares across the Porcupine-Destor Break, a gold bearing structure of the Abitibi Belt.

Under the joint venture option agreement, Aurizon can earn a 50% interest in the project, subject to an underlying 2% net smelter royalty, by incurring expenditures of $10 million over four years, of which $3.5 million is a firm commitment to be spent within two years.

Aurizon also said it may earn an additional interest of 15%, for a total interest of 65%, by either delivering a feasibility study, or spending an additional $15 million on the project.

The company said it will provide input on exploration programs and will become operator after the initial 50% interest has been earned. During the course of the initial four year term, Aurizon will have the right to subscribe for common shares of Typhoon of up to $500,000 on each anniversary of the option agreement, for a total investment of up to $2 million.

The first subscription will

consist of 609,756 units at a price of $0.82 per unit, with each unit being comprised of one common share in the capital of the company and one share purchase warrant. Each warrant will entitle Aurizon to purchase one additional common share of Typhoon at the price of $1.25 per share for a period of 18 months following the closing.

The securities issued under the offering will be subject to a four month hold period. The remaining subscriptions will be based on a 15 day weighted average share price. The first two subscriptions totaling $1 million are firm commitments and are required in order for Aurizon to earn the initial 50% interest in the Fayolle project.

Typhoon has explored the Fayolle project since 2003 and incurred around $10 million advancing the project, according to Aurizon.

Canada-based Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, and by increasing its asset base through accretive transactions.

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