Under the definitive deal announced last month, the Vancouver-based company would pay Clancy Exploration Ltd C$175,000 cash and almost 3.8 million common shares, as well as A$520,000 in exploration fees over two years, Pacton said in a press release Tuesday.
A finder's fee of 300,000 common shares would be payable to Genomics Australia Pty Ltd.
Pacton Pilbara Pty Ltd and Subiaco, Australia-based Clancy Exploration would form a joint venture, with the former operating the Hong Kong project.
The Hong Kong project is adjacent to Pacton’s Friendly Creek and Golden Palms projects at the Egina gold area of the Pilbara fields in Western Australia.
In October, Pacton reported finding gold nuggets at six locations on its Friendly Creek land.
Shares of Pacton slipped less than C$0.01 to C$0.24 in Tuesday’s Canadian trading. They edged up less than US$0.01 to US$0.18 on the OTC Markets.
Contact Dennis Fitzgerald at [email protected]