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Pacton Gold strikes definitive deal to become joint venture partner in advanced Red Lake gold property

Pacton will acquire all of TomaGold's 39.5% interest in the venture, the company said

Pacton Gold Inc. -
The Sidace Lake property lies 28 km northeast of the town of Red Lake, at the northern extent of the Red Lake Greenstone belt

Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) told investors Thursday that it has now struck a definitive deal to become a joint venture partner in the Sidace Lake advanced gold property.

The project is contiguous to the company's current claims in Red Lake, Ontario.

READ: Pacton Gold starts drilling targets along the LP extension at Red Lake

Pacton will acquire all of TomaGold's 39.5% interest in the venture, which TomaGold currently holds with Evolution Mining Ltd (ASX:EVN) and Newmont Corporation.

There are several aspects to the terms of the deal, including upon acceptance by the Toronto venture exchange, that Pacton will pay TomaGold C$250,000 and issue 10 million of its shares.

Within six months of the exchange acceptance, Pacton must also pay C$250,000 and issue C$800,000 worth of shares at a price per share equal to the greater of C$0.16 and the 5-day volume weighted average price (VWAP) of the company's shares immediately preceding the issue date.

Also when Pacton files an NI 43-101 technical report showing a gold resource estimate of 750,000 ounces of gold or greater, it must issue a further 4.16 million shares to the vendor.

The Sidace Lake property lies 28 kilometres northeast of the town of Red Lake, at the northern extent of the Red Lake Greenstone belt. The project already boasts over 81,600 meters of historic drilling.

Pacton will become the operator and plans to aggressively expand the mineralized zones at the project with exploration drilling.

Contact the author at giles@proactiveinvestors.com

Quick facts: Pacton Gold Inc.

Price: 1.58 CAD

TSX-V:PAC
Market: TSX-V
Market Cap: $52.18 m
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Pacton Gold announces 11,000 metre drill program for Sidace JV Project

Pacton Gold (CVE: PAC- OTC: PACXF) CEO Dale Ginn joined Steve Darling from Proactive to discuss the news the company is about to begin a new drill program at their joint venture project Sidace in Red Lake. Ginn discusses how big the program will be and where they are planning to drill. Ginn...

on 3/8/20

2 min read