Momentum behind Canadian resources companies in Western Australia’s Pilbara region continues to build unabated with Pacton Gold, the region’s third largest tenement holder, continuing its prolific M&A activity.
Pacton is progressing with a binding letter of intent to acquire a 70 percent stake in the Hong Kong project, a conglomerate gold play adjacent to Pacton’s Friendly Creek and Golden Palms projects.
The Canadian explorer is looking to acquire equity interest in the project from ASX-listed Clancy Exploration (ASX:CLY).
Under the terms of the LOI, Pacton will acquire the 70% project interest by paying Clancy CDN$175,000 and issuing 3.7 million shares.
Upon completion, Pacton and Clancy will enter into a joint venture, with Pacton acting as operator of the Hong Kong Project. A minimum of CDN$500,000 must be spent by Pacton within two years of completion of the transaction.
The Hong Kong project consists of 5km of strike within the Egina area of the Pilbara, a section highly prospective for alluvial gold nuggets.
Greenstone mineralisation has been historically mined throughout the Hong Kong Project for alluvial gold.
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,” Alec Pismiris, interim president and CEO of Pacton Gold said.
“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.
“We look forward to working closely with Clancy to explore the Hong Kong Project as part of our broader Egina Area development strategy,” he said.
The transaction is subject to the acceptance of the TSX Venture Exchange.