Pacton Gold Inc. (Pacton) has entered into a binding letter of intent (LOI) to acquire a 70% equity interest in the Hong Kong project based in Western Australia from Clancy Exploration Ltd (Clancy), an Australian Securities Exchange listed exploration company.
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.
"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," commented Alec Pismiris, Interim President and CEO of Pacton Gold.
"We look forward to working closely with Clancy to explore the Hong Kong project as part of our broader Egina area development strategy."
For location map of the Property, please see: http://www.pactongold.com/Pacton-Location-Map.jpg.
Under the terms of the LOI, which will be formalised by a definitive agreement among the parties, the company can purchase a 70% equity interest in the Hong Kong project by paying Clancy CAN$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 CAN$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.
Read the article online at: https://www.globalminingreview.com/finance-business/11102018/pacton-gold-expands-reach-in-egina-region-with-hong-kong-project-acquisition/