VANCOUVER, BC / ACCESSWIRE / October 13, 2020 / Pacton Gold Inc. (TSXV:PAC)(OTC PINK:PACXF)(FSE:2NKN) (the "Company" or "Pacton") is pleased to announce that it has entered into an agreement to vend 75% of three of its properties within its Western Australian Pilbara portfolio. The Company has entered into a binding letter of intent (the "Pacton LOI") with Pilbara Gold Corp Ltd ("PGC"), whereby PGC agreed to purchase 75% of the Arrow, Yandicoogina and Boodalyerrie gold properties (the "Properties") (Figure 1).
Raiden Resources Limited, an Australian Stock Exchange listed company (ASX: RDN) ("Raiden"), has entered into an exclusive option agreement to acquire all the issued shares of PGC. Under the terms of the option agreement between Raiden and PCG, Raiden will assume all obligations and rights of PGC under the Pacton LOI, which will be formalized by a definitive agreement.
The terms of the Pacton LOI include:
- Upon completion of the transaction, payment of CDN$500,000 to Pacton and issuance of 129,721,250 fully paid ordinary common shares of Raiden to Pacton (valued at approximately CDN$ 2,600,000);
- A further CDN$500,000 payment to Pacton on the first anniversary of completion of the transaction;
- Pacton will retain a 25% carried interest in the Properties until the following condition is satisfied:
- Upon the delineation of a mineral resource in accordance with the JORC 2012 Guidelines (or other globally recognised Code) of at least 250,000 oz Au at a minimum grade of 1g/t Au across any of the Properties, the parties will be required to enter into a joint venture, under which Pacton can contribute proportional to its respective equity interest or dilute.
Dale Ginn, Executive Chairman for Pacton, commented, "We are excited to partner with Raiden in the advancement of the Pilbara Gold portfolio and also gain exposure to Raiden's existing copper and gold asset base in the world class Western Tethyan belt. This transaction allows us to retain our key Pilbara project in Egina, while remaining a significant participant in the exploration for "Hemi" style gold deposits. We retain a 25% carried interest and become a significant shareholder of Raiden Resources, and are confident that Raiden will carry out aggressive and meaningful exploration on the Arrow, Yandicooginaand and Booalyerriei projects. Our primary focus is on our Red Lake projects where drilling is now underway on the Main Block LP style targets and on the Sidace Zone."
Figure 1. Pacton Gold's Western Australia tenements highlighting the Arrow, Yandicoogina and Boodalyerrie properties.
For its efforts in assisting with the arrangement of the transaction, the Company will pay a finder's fee to Cobra Investments (Aust) Pty Ltd, pursuant to the policies of the TSX Venture Exchange.
The matters referred to herein are subject to the acceptance of the TSX Venture Exchange.
About Pacton Gold
Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high-grade conglomerate and orogenic gold properties located in the district-scale Pilbara gold rush in Western Australia and the Red Lake District, Ontario.
About Raiden Resources
Raiden Resources Limited (ASX: RDN) is an ASX/DAX listed gold-copper focused exploration Company focused on the emerging prolific Tethyan metallogenic belt in Eastern Europe and has established a significant exploration footprint in Serbia and Bulgaria, and most recently in Western Australia.
On Behalf of the Board of Pacton Gold Inc.
R. Dale Ginn
Executive Chairman
For more information, please contact 1-(855)-584-0258 or info@pactongold.com.
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. 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. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
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.
SOURCE: Pacton Gold
View source version on accesswire.com:
https://www.accesswire.com/610281/Pacton-Vends-Certain-Pilbara-Properties-for-Shares-and-Cash-Retains-25-Carried-Interest
