Pacton Gold has revealed its plans to add seven gold tenement licenses in the Pilbara region in Western Australia through the acquisition of Australian exploration company Drummond East from Impact Minerals.
The Canadian junior exploration company has entered into a binding letter of intent (LOI) to buy 100% of the shares in Drummond East to get hold of a total of around 1,126km2 of exploration properties.
According to Pacton, the acquisition will enable it to become the third largest land holder in the Pilbara mining region with a total of around 2,227km2 under its control. The properties involved in the deal are directly near and proximal to key exploration assets controlled by Novo Resources and Kairos Minerals, said the Canadian miner.
Pacton interim president and CEO Alec Pismiris said: “The Impact Minerals team, led by Dr. Mike Jones, have successfully assembled a significant portfolio of advanced gold projects that present excellent prospectivity for discovery upside for the shareholders of Pacton.
“The Impact transaction solidifies our presence in the region, and is directly in line with our mandate to become one of the leaders in the Pilbara Gold Rush. With a strong treasury and financial backers, we are aggressively reviewing other opportunities.”
Pacton said that previous explorations at the licenses to be acquired indicate more than 90km of prospective Fortescue Group conglomerates occurring at or near-surface.
Particularly, the conglomerates are believed to be found to the west and east of Marble Bar and also in proximity to the Beatons Creek gold deposit located near Nullagine, said the Canadian firm.
Further, it revealed that the conglomerates identified are about the same age as the Witwatersrand Basin Gold deposits found in South Africa.
The acquisition, which will be subject to approval of Canada’s TSX Venture Exchange, will be carried out in a cash and stock combination.
Pacton has agreed to pay Impact a total of C$350,000 ($272,210) and also issue it 2,125,000 of its common shares. Impact will also be eligible to receive discovery bonus along with royalties as part of the transaction.