Pacton Gold, a Canadian junior exploration company, has signed an agreement to acquire a stake of 70% in the Hong Kong Gold Project in the Pilbara region of Western Australia from Clancy Exploration.
The Hong Kong Gold Project comprises a single exploration license spread across 40.15 km2. The gold exploration license directly adjoins Pacton Gold’s Friendly Creek and Golden Palms projects.
Located completely within the Yandeyarra Aboriginal Reserve, the exploration license is valid up to 19 July 2022.
After the closing of the deal, Pacton Pilbara, a wholly-owned Australian subsidiary of Pacton Gold, will form a joint venture with Clancy Exploration for the gold project with the former being the operator. The deal will be subject to the acceptance of the TSX Venture Exchange.
Clancy Exploration chairman David Lenigas said: “All documentation has now been finalised and signed with Pacton and the deal is now only subject to TSXV approval. We do not anticipate this TSXV approval to take too long. The funds provided will assist greatly in Clancy’s new Moroccan cobalt strategy.
“Pacton are aggressively exploring the Pilbara for gold, having accumulated a very significant land package in the region, and Pacton will be an excellent partner for Clancy on Hong Kong.”
According to Clancy Exploration, the Hong Kong Gold Project consists more than five strike kilometers of lower Fortescue Group rocks including the Hardey Formation and also the Mount Roe Basalt, as mapped by the Geological Survey of Western Australia (GSWA).
Explorers in the past had also targeted Archaean lode hosted gold mineralization and VMS mineralization.
Earlier this month, Pacton Gold signed an agreement to acquire the Golden Palms property. According to the Canadian firm, the property is strategically significant as it extends its Friendly Creek project northward.
Apart from that, the Golden Palms property is also adjacent to Novo Resources’ tenement block that holds the basal Mount Roe contact over the underlying basement rocks of the Pilbara Well Greenstone belt.
In its home country, Canada, the junior exploration company signed an option agreement to acquire 12 mineral claims located in the Red Lake Mining Division in Ontario.