Pacton Gold Inc. is pleased to announce that further to the Share Purchase and Option Agreement (“SOPA”) to acquire up to 80% ownership interest in Arrow (Pilbara) Pty Ltd, an Australian company wholly owned by Arrow Minerals Limited, the Company which currently owns 51% of Arrow Pilbara has agreed to terms to acquire the remaining 49% ownership in Arrow Pilbara.
Arrow Pilbara holds two granted tenement licences and two applications for licences, comprising of a total of 609 km2. The Property is an advanced gold project portfolio which consists of conglomerate gold targets within the Witwatersrand Basin age-equivalent Mallina Basin.
Highlights of the Transaction:
- Securing 100% ownership of strategic land holdings totaling 609 km2, with recent discovery of gold nuggets from outcropping conglomerates. Nuggets 5 to 10 mm in size have been discovered on the Property. (refer to Company website);
- Similarity in style to the Witwatersrand Basin Gold deposits of South Africa including uranium anomalies associated with conglomerate gold targets identified from radiometric surveys. Seven conglomerate gold targets have been identified with uranium radiometric anomalies;
- Directly adjacent and proximal to key exploration properties controlled by Novo Resources Corp., De Grey Mining Ltd., and Kairos Minerals Ltd.;
- Gold-arsenic anomalies identified along structures which host gold mineralization on adjacent properties.
Alec Pismiris, Interim President and CEO of Pacton Gold stated:
“We are pleased to be able to accelerate the acquisition of Arrow Pilbara and we will continue to work with the team at Arrow Minerals, who assembled this significant portfolio of advanced gold projects with excellent prospectivity. The ownership structure will provide further exploration and discovery upside for the shareholders of Pacton. Pacton’s Pilbara gold project is fast becoming one of the most significant in the Pilbara region.”
Share Sale Agreement (“Agreement”) Terms
Under the terms of the Agreement, the Company will acquire the remaining 49% ownership interest in Arrow Pilbara it does not own by paying Arrow a total of $1,000,000 and issuing to Arrow 2,000,0000 common shares (“Consideration Shares”). Arrow has agreed the Consideration Shares will be subject to a voluntary escrow period to June 30, 2019.
By entering the share sale agreement, the Company is released from certain obligations relating to the option to earn a further 29% ownership interest in Arrow Pilbara under the SOPA. Pacton will be required to meet its obligations to payments linked to the grant of two applications for licences and discovery of measured, indicated or inferred resource on the Property.
Arrow will retain all rights to explore for, mine and extract lithium, caesium and tantalum from the Property.
This transaction is subject to the approval of the TSX Venture Exchange.