Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) announced a C$6 million financing package on Wednesday for Canadian exploration expenses and for working capital.
The resource group says it will place 25 million flow-through shares at C$0.14 each for total gross proceeds of C$3.5 million. It also announced a private placing of around 20.8 million shares at C$0.12 each for total gross proceeds of C$2.5 million.
The gross proceeds from the flow-through shares will be used for Canadian exploration expenses, while the proceeds from the non-flow through shares will be used for general working capital.
All securities issued will be subject to regulatory hold periods for four months and both placings are subject to the approval of the TSX venture exchange.
Pacton Gold is focused on advancing high-grade gold properties in the district-scale Pilbara gold rush area in Western Australia and the famous Red Lake district in Ontario, Canada.
Last month, Pacton updated on its Red Lake gold project and announced the addition of a new target area to its 10,000-metre drill program.
The program now includes four exploration hotspots - Boyden, Carricona, LP Fault Extension and Shim - which all lie within the Madsen-Dixie fault corridor, it revealed.
The company selected the Boyden prospect as its first drill target area based on the results of initial exploration activity and historical data. Channel sampling at the prospect returned values including 101.3 grams per ton of gold and 33.9 grams per ton of the yellow metal.
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