Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) said it has closed a private placement of almost 5.9 million flow-through common shares for total gross proceeds of almost C$2.1 million.
The Vancouver-based mining company with operations in Australia and Canada said Friday in a press release that the lead order is for almost C$2 million from Sprott Asset Management LP as subadviser to Ninepoint 2018-II FT LP. Sprott Asset Management was founded by billionaire investors Eric Sprott, who acquired a 10% stake in Pacton earlier this year.
The gross proceeds from the issuance will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined by Canada’s Income Act. A flow-through vehicle passes income to investors to avoid double taxation.
All securities issued under the placement will be subject to a four-month hold period from the date of issue in compliance with applicable securities laws. The placement is subject to final acceptance of the TSX Venture Exchange.
Shares of Pacton Gold climbed C$0.02 to C$0.32 in Friday’s Canadian trading. They fetched US$0.23 on the OTC Markets.
Earlier this month, Pacton’s stock rallied after announcing the hiring of Johnathon Campbell as field logistics manager to help advance its exploration in the Pilbara gold area of northwestern Australia. Campbell is credited in the Australian mining community with the discovery of “watermelon-seed” gold nuggets that started the Pilbara gold rush.
Contact Dennis Fitzgerald at [email protected]