Canadian junior mining company Pacton Gold has signed a definitive agreement to acquire the Golden Palms property (E 47/3810) in Western Australia.
Image: Location map of Pacton tenements in the Egina Area. Photo: courtesy of CNW Group/Pacton Gold Inc.
The Golden Palms project is strategically significant in that it extends Pacton’s adjacent Friendly Creek and Hong Kong tenements northward and westward to join Novo Resources Corp.’s Egina project.
Under the terms of the Golden Palms agreement, Pacton will purchase 100% of the property by paying a total of $100,000 and issuing 400,000 common shares on completion of the transaction.
The Company also announces that it has entered into an option agreement to purchase 12 mineral claims located in the Red Lake Mining Division, Ontario (the “Red Lake Property”), for aggregate consideration of $110,000 and 250,000 common shares to be paid and issued over two years.
The claims are subject to net smelter returns royalties ranging from 0.25% to 2.25%, half of which can be purchased by the Company for $250,000.
The 12 newly acquired mineral claims are strategically located between Pure Gold’s Madsen and Wedge zone ground and Great Bear Resource’s Dixie discovery. In late September 2018, Great Bear Resources reported a drill intersection of 18.23 g/t Au over a drill width of 10.35 meters in what was described as “crack-seal” style veining typical of the Red Lake district.
Pacton has now consolidated this strategic land position with the acquisition of these claims within a fertile gold bearing district.
Both the Golden Palms agreement and Red Lake Property agreement are subject to the acceptance of the TSX Venture Exchange. The Company will be seeking such acceptance forthwith.
Source: Company Press Release