Pacton Gold Inc. (TSX.V:PAC.V) (OTCMKTS: PACXF) has reached an agreement for the purchase of Pilbara gold project
owned by Impact Minerals. The gold project was part of Drummond East, a subsidiary of Impact
Minerals that the company acquired 100% ownership interest.
Under the terms of the Letter of Intent that formalized the definitive agreement, Pacton Gold is to pay CAD$350,000 and issue 2.12 common shares of Pacton Gold for 100% ownership interest in Drummond East. In addition, the company is to pay CAD$500,000 discovery Bonus, on publishing gold resources of over 250,000 ounces on the property.
Pacton is also to grant Impact Minerals a 2% net smelter royalty on standard industry terms to be agreed between the parties. A finder’s fee is also to be paid to COMVERJ Pty Ltd in respect of the transaction.
With the acquisition, Pacton Gold is now the third largest landholder in Western Australia Gold rush region. The acquisition increases the company’s land holdings to 2,227 sq. Km.
According to Impact Minerals Managing Director, Mike Jones, the selloff confirms firm belief about the company’s ability to discover another major conglomerate-hosted gold deposit in Australia. The company has already acquired an option to purchase 95% of an advanced conglomerate from Rock Solid Holdings PTY Ltd with the previous production of about 185,000 ounces of gold.
“In addition, we have recently met with the management and backers of Pacton Gold and were impressed with their track records, their business plan for conglomerate-gold exploration in the Pilbara and also their ability to raise significant capital,” said Dr. Jones.
Pacton Gold Rush
The acquisition of the Pilbara Gold Project underscores how focused Pacton Gold is, on gold exploration, having assembled a large and prospective ground-holding in the region. According to Chief Executive Officer, Alec Pismiris, the acquisition validates the company’s strategy of becoming one of the leaders in the Pilbara gold rush.
The acquisition opens the door for the company to continue acquiring and exploring gold projects the region. The Company already has the financial muscle to bring the project to fruition after completing a $5.5 million capital raise.
The raise included a CAD$2 million investment from a well-known mining investor Eric Sprott. Mr. Sprott investment accounts for approximately 10.1% of the company’s outstanding common shares, and he is now set to control about 18.4% of the company.
Pacton Gold has been aggressive as it looks to strengthen its gold exploration drive. In April, the company acquired a 51% ownership interest in Arrow (Pilbara) Pty Ltd a wholly owned subsidiary of Arrow Minerals Limited. The company also has an option to buy an additional 29% stake in Arrow Pilbara.
The acquisition spree appears to have strengthened investor confidence on Pacton Gold. The company’s stock has been making impressive strides its shares having rallied by more than 80% since the start of the year. The stock is currently trading in a strong uptrend, awaiting to see if it will continue to power high as the company moves to explore and develop its gold projects in Australia.