The company has secured a 12-month option from private company Cratonix to evaluate the magmatic sulphide potential of the Nanutarra project, which sits about 30km west of the Nanutarra Roadhouse in the Western Gascoyne region of WA.

Consideration for the option is A$10,000 cash and $25,000 worth of Todd River shares.

If Todd River exercises the option, it can earn 80% by spending $2 million on exploration over three years.

Once Todd River earns 80%, a joint venture will be formed and Cratonix will be free-carried until a decision to mine.

If a decision to mine is made, Cratonix may elect to contribute its share of costs, or convert its interest into a 1.5% net profit royalty.

The 9sq.km Nanutarra project has been subject to limited previous exploration.

Todd River said the project covered a significant mafic-ultramafic complex considered prospective for intrusion-hosted nickel-copper-PGE sulphides.

The company plans to reprocess and review the existing geophysical data and carry out a thorough reverse circulation drilling program to test for the presence of mineralised sulphides associated with electromagnetic conductors previously indicated from shallow drilling.

Any expenditure during the option period goes towards the earn-in costs.

Todd River managing director Will Dix said the company was delighted to secure an exciting nickel opportunity to add to its Northern Territory base metal projects.

"With our in-house knowledge and expertise in nickel exploration, we believe we will be able to effectively and efficiently explore the project to maximise the opportunity it presents," he said.

"We have applied for co-funding through the Geological Survey of Western Australia's EIS government co-funded exploration drilling program and we hope that will assist us in fast-tracking drilling on the project."

Todd River is currently drilling its Mt Hardy copper-zinc project in the NT.

The company had about $1.5 million at the end of June and expected to spend $900,000 in the September quarter.

Todd River's underwritten 3.1c entitlement offer to raise $1.9 million is due to close today.

Shares in the company closed 3.3% higher at 3.1c.