VANCOUVER, British Columbia, Aug. 16, 2018 (GLOBE NEWSWIRE) -- Pacton Gold Inc. (TSXV: PAC) (the “Company” or “Pacton”) is pleased to announce that further to the binding letter of intent (“LOI”) signed earlier this year (see news release dated May 22, 2018) the Company has finalized and entered into a Share Sale Agreement (“Agreement”) to acquire 100% of the shares in Drummond East Pty Ltd (“Drummond East”) from Impact Minerals Limited (ASX: IPT) (“Impact”) which holds seven granted tenement licenses in the Pilbara, comprising of a total of 1,126 km2 (“Property”).
Agreement Terms
Under the terms of the Agreement, the Company will purchase 100% ownership of Drummond East by paying Impact CAD$325,000 and issuing to Impact 2,125,000 common shares of Pacton. Impact will be entitled to receive a discovery bonus of CAD$500,000 if Pacton publishes measured, indicated, or inferred gold resources of over 250,000 ounces on the Property.
Pacton and Impact will enter into a Minerals Royalty Deed whereby Impact will receive to a 2% net smelter royalty in respect of the Property. Pacton shall, retain an exclusive and unlimited right to purchase 50% of the net smelter royalty back from Impact for CAD$500,000.
The Agreement is subject to TSX Venture Exchange acceptance.
About Pacton Gold
Pacton Gold (PAC: TSXV; PACXF: US) is a well-financed Canadian junior with key strategic partners focused on the exploration and development of conglomerate-hosted gold properties located in the district-scale Pilbara gold rush in Western Australia. The Company recently raised approximately $5.5 million, currently controls the third largest conglomerate-hosted gold property portfolio totaling in excess of 2,500 km2 and continues to aggressively review additional accretive acquisitions.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
For more information, please contact 1-(855)-584-0258 or info@pactongold.com.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.