Pacton Gold has entered into a binding letter of intent (LOI) to acquire a 70% stake in the Hong Kong project from Clancy Exploration.
The acquisition of this strategic exploration license adjoining Pacton’s Friendly Creek and Golden Palms projects provides a considerable land holding in what is emerging to be the primary focus of conglomerate gold exploration in the region.
Over 5 km of strike of the lower Fortescue Group lithologies have been mapped within the Hong Kong Project and notable historical alluvial gold mines are located within these formations. In addition, structurally controlled, greenstone hosted gold mineralisation has been historically mined across the Hong Kong Project .
Highlights of the Transaction:
The Hong Kong Project consists of a single granted exploration license covering 40.15 km2 and directly adjoins the Friendly Creek and Golden Palms projects held by Pacton.
Over 5 km of strike of the contact between Hardey Formation and Mount Roe Basalt occurs within the Hong Kong Project. Notable alluvial gold workings occur along the base of the Mount Roe Basalt.
Multiple structurally controlled, greenstone hosted gold workings occur throughout the Hong Kong Project.
Consolidated ground holding within the Egina Area offers the capacity for Pacton to undertake an extensive systematic approach to determining the conglomerate and structurally controlled gold mineralisation potential of the region.
Egina Area is emerging as the focal point of conglomerate gold exploration in the Pilbara and Pacton aims to capitalise on its substantial ground holding inclusive of granted mining leases to rapidly evaluate the development potential of its portfolio.
Pacton Gold interim president and CEO Alec Pismiris said: “The acquisition of the Hong Kong Project provides a considerable holding of contiguous tenure within the emerging focal point of conglomerate exploration in the region. Through the process of evaluating the extensive portfolio held by Pacton in the Pilbara region, we are further appreciating the significance of the association between the primary shear hosted and conglomerate styles of gold mineralisation in the region.
“We look forward to working closely with Clancy to explore the Hong Kong Project as part of our broader Egina Area development strategy.”
Under the terms of the LOI, which will be formalized by a definitive agreement among the parties, the Company can purchase a 70% equity interest in the Hong Kong Project by paying Clancy CDN$175,000 and issuing to Clancy 3,797,470 common shares of the Company.
Upon completion of the acquisition, Pacton and Clancy will enter into a joint venture, with Pacton acting as operator of the Hong Kong Project. A minimum of CDN$500,000 must be spent by Pacton within two years of completion of the transaction. Clancy will be free carried with respect to expenditures until a decision to mine is made unanimously by both parties.
A finder’s fee will be payable to Geonomics Australia Pty Ltd. in respect of the transaction as permitted by the policies of the TSX Venture Exchange.
This transaction is subject to the acceptance of the TSX Venture Exchange.
Source: Company Press Release