Pacton Gold Inc. (OTCMKTS: PACXF) has rallied by more than 90% since the start of the year, presenting a unique opportunity for investors to start taking profit. First on the line is Director, Richard Albert, who according to regulatory fillings offloaded 100,500 shares of the firm’s stock in a transaction dated May 12, 2018. The stock was sold at an average price of C$0.45 and generated a total of C$45,225 for the insider.
Pacton Gold Price Action
It remains to be seen if other investors and insiders will follow suit given that Pacton Gold is trading in a strong uptrend. Given the strength of the upward momentum, the stock looks set to continue powering high. Pullbacks are expected to present unique buying opportunities for investors to join the upward run.
The stock faces immediate support at the $0.36 handle on any pullbacks, below which it could drop to the $0.18 which appears to be another critical support level.
Pacton Gold is a junior exploration company engaged in the acquisition exploration and evaluation of mineral properties in Canada and the U.S. The company specializes in the exploration of gold, uranium, and Lithium. It currently owns 100% interest in the Tully West Gold Property located in Ontario.
The stock recently spiked by more than 25%, on the announcement that the exploration company has entered into a binding letter of intent to acquire 100% of the shares of Drummond East Pty Inc. The wholly owned subsidiary of Impact Minerals Limited owns seven tenement licenses comprising 1,126 sq. /km for gold in the Pilbara region.
Pacton Gold is to pay C$350,000 and issue 2.13 million common shares to acquire the 100% shares in Drummond East. The company will also pay an additional C$500,000 to Impact Minerals on the discovery of over 250,000 gold ounces in the Pilbara property.
“We are pleased to make accretive acquisitions that strategically place Pacton as the third largest landholder in Western Australia’s Pilbara conglomerate-hosted gold region. Pacton continues to further consolidate the region through key property evaluations, and the addition of Drummond East increases our land holdings to 2,227 sq. Km,” said Pacton’s interim president a chief executive officer, Alec Pismiris.
According to Chief Executive Officer, Alec Pismiris, the transaction solidifies the company’s presence in the region and in line with the plan to become one of the leaders in the Pilbara Gold Rush. Novo Resources Corp (OTCMKTS: NSRPF) and Kairos Corp are some of the company’s neighbors in the Pilbara region.
$5.5 Million Capital Raise
The acquisition OF Drummond East comes just days after Pacton Gold closed a previously announced brokered private placement of its common shares. Under the offering, the company issued 24.13 million units. Each unit consisted of one common share and one transferable common share purchase warrant at a price of $0.35.
Gross proceeds from the offering totaled $5.6 million. The exploration and development company plans to use net proceeds from the offering to finance exploration works at its properties in Canada and Australia. Part of the funds will also be used for general working capital.