Pacton Gold Inc. (TSXV: PAC) (the “Company” or “Pacton”) is pleased to announce that it has entered into a letter of intent (“LOI”) whereby the Company can acquire 100% of the issued and outstanding shares of CTTR Gold Pty Ltd (“CTTR”), an Australian proprietary limited exploration company. CTTR is a newly formed company, incorporated at the end of October 2017 that holds applications to nine tenenment licenses for a strategic mineral property group (the “Property”) in the Pilbara Region of Western Australia. The 492 km2 Property is an advanced gold project portfolio which consists of conglomerate gold targets within the Witwatersrand Basin age-equivalent Mallina Basin.
Highlights of the Property Transaction:
- -Excellent exposure to a portfolio within a large and strategically located land package in the Pilbara Mining Regions of Western Australia:
- -Pilbara Gold Project: Strategic land tenements applications totaling 492 km2, directly adjacent and proximal to key exploration properties controlled by Novo Resources Corp., De Grey Mining Ltd. and Kairos Minerals Ltd. (refer Figure 1).
- -The Pilbara’s Archean craton has emerged as the world’s most exciting gold exploration region. Coarse pyritic conglomerates appear to represent a new gold model for 2.8 billion year old sedimentary and volclanic rocks of approximately the same age as the Witwatersrand gold reefs in South Africa. Novo and other explorers report gold occurences as extremely large to fine primary gold nuggets, surrounded by fine gold haloes resulting from a secondary redisdribution of gold from the nuggets.
- -All nine (9) tenements under application are advanced and within months to full granting status with no current native title objections received.
- -Exposure to other accretive acquisitions in the Western Australian Pilbara Mining Region.
Figure 1: CTTR’s tenanment applications (pink) in Pilbara Gold Projects
and surrounding tenements and discoveries
Alec Pismiris, Interim President & CEO of Pacton:”It is exciting to be able to secure applications for such a strategic and quality land package in a sought after mineralized region in the Pilbara Mining Region in Western Australia. In 2017, the Pilbara region generated intense global interest and staking following the newly identified gold potential of the unusual, extensive, and spectacular gold bearing conglomerates announced by Novo Resources.We are pleased to be able to assemble a significant portfolio of advanced gold projects with excellent prospectivity that are expected to provide key exploration and discovery upside for the shareholders of Pacton.”
Pilbara Gold Project and its Prospectivity
The Property comprises nine (9) exploration licence applications covering 492 km2 of ground prospective for Witwatersrand-style conglomerate-hosted gold in the Pilbara region of Western Australia (see Figure 1).
The licences have the potential to cover various parts of the prospective contact between the older Pilbara granite-greenstone terrain and the overlying Fortescue Group rocks in the East Pilbara region, including areas close to and adjoining licences held by Novo Resources Corporation, De Grey Mining Ltd and Kairos Mining Ltd. (see Figure 1).
Figure 2: Schematic cross section of Purdy’s Reward source: http://www.mining-journal.com
Pacton is currently reviewing previous exploration data and detailed mapping of the tenements and once the applications have been granted, Pacton is planning a detailed exploration programme, which includes determining the most appropriate methodology. The exploration programme identified by CTTR will include prospecting, rock chipping and sampling, stream sediment and soil sampling over all nine (9) tenements.
Under the terms of the LOI, Pacton has been granted an option to acquire all of the issued and outstanding shares of CTTR by paying and issuing the following to CTTR’s sole shareholder, The Ridge Street Trust:
Upon execution of the LOI, paying a $25,000 non refundable deposit (paid);
Upon TSX Venture Exchange acceptance of the transaction:
- -paying $75,000; and-issuing 916,666 common shares and 458,333 share purchase warrants. Each warrant will be exercisable into one additional common share for a period of 18 months from the date of issue at a price of $0.45 per share.
Upon grant of at least six of the exploration licenses:
- -paying $50,000-issuing 416,666 common shares and 208,333 share purchase warrants. Each warrant will be exercisable into one additional common share for a period of 18 months from the date of issue at a price to be determined at the date of grant, subject to the policies of the TSX Venture Exchange.
All monetary amounts referred to herein are in Canadian currency.
A finder’s fee will be paid to COMVERJ Pty Ltd. in respect of the transaction as permitted by the policies of the TSX Venture Exchange.
This transaction is subject to the approval of the TSX Venture Exchange.
About Pacton Gold
Pacton Gold Inc. (TSXV: PAC) is a Canadian junior exploration company focused on acquiring, exploring and advancing mineral assets in key mining friendly locations globally.
All technical information in this press release has been reviewed and approved by Peter Caldbick, P.Geo., a director of the Company. Mr. Caldbick is a Qualified Person for the purposes of National Instrument 43-101.
On Behalf of the Board of Pacton Gold Inc.
Interim President & CEO
For more information, please contact 1-(855)-584-0258 or firstname.lastname@example.org.
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited the prospect of the Company achieving success in exploring the Property and the impact on the Company of these event, including the effect on the share prices. References to other companies with proximal exploration properties in the Pilbara region is for information only and there are no assurances that the Company will achieve results similar to other companies in the region. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.