Pacton Gold Inc (TSX.V:PAC, OTCMKTS:PACXF) is reportedly planning to expand its portfolio in Western Austrailia following the recent announcement that it has signed a binding letter of intent (LOI) to purchase all the mining and exploration licenses for Friendly Creek.
Pacton will acquire the licenses from Darren White and an Australian firm called Gardner Mining Pty Ltd. The acquisition will involve one exploration license and five mining leases and they will contribute towards expanding Pacton Gold’s portfolio in the Pilbara mining region in Western Australia. Friendly Creek is believed to be one of the richest areas in Pilbara in terms of alluvial deposits.
A lot of alluvial fine-grained gold and significantly sized gold nuggets have been recovered from Friendly Creek. Alec Pismiris, the CEO of Pacton Gold stated that the company’s acquisition of the leases for Friendly Creek will provide it with a strategic advantage over rival firms. He also revealed that the move will also allow the Pacton Gold to carry out rapid large-scale bulk-sampling programs.
Pismiris also added that the company is excited to be working closely with Gardner. Pacton has been working on building a strategic portfolio and it is still working on bringing more acquisitions on board. Friendly Creek also happens to be located near major exploration projects that are operated by Kairos Minerals Ltd (OTCMKTS:MPJFF) and Novo Resources Corp (OTCMKTS:NSRPF).
Analysts believe that the proximity of the Friendly Creek operations to the Novo Resources mines could be of significant benefit to Pacton. This is because Novo can handle a lot as far as fostering efficiency in the exploration programs and educating the market are concerned. In short, Novo Resources can handle most of the heavy lifting, thus making things easier for Pacton Gold. However, this is based on an analysis presented by Caesars Report which focuses on a variety of topics including Pacton’s growth and exploration through acquisitions, financing, feasibility, team structure, and future structure among others.
The report also stated that Pacton Gold has the capacity to put together a large land position in a few months. However, the report claims that the company should be viewed as an early stage exploration firm, but one that has already proven the occurrence of gold nugget on various pieces of land that it purchased.
Pacton Gold also revealed that the terms of the agreements in the license acquisition will be formalized through a definitive agreement between the parties involved. The company plans to acquire 100 percent ownership interest in the Australian fields. The Pacton will reportedly issue 2.5 million common shares as part of the deal and pay C$25,000 to vendors. However, the transaction will only go through if it is approved by TSX Venture Exchange.
Pacton Gold is determined to cash in through the Pilbara region by venturing deeper into the area and finding the gold-rich opportunities. The announcement of the acquisition plans aroused positive sentiments from investors, leading to an uptick of around 18 percent in the company’s shares on Monday. This suggests that investors are pleased in the current direction of the company.