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Pacton Gold to Acquire JV on Advanced Gold Project at Red Lake

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Pacton Gold to Acquire JV on Advanced Gold Project at Red Lake

 

 

 

 

 

Pacton Gold Inc. (TSX-V: PAC) (OTC: PACXF) (FSE: 2NKN) is pleased to announce that it has entered into a binding letter of intent with TomaGold Corporation (TSX-V: LOT), whereby the Company will acquire all of TomaGold’s interest, being 39.5%, in a joint venture it currently holds with Evolution Mining and Newmont Corporation (formerly GoldCorp when TomaGold entered into the joint venture) on the Sidace Lake Property. Located in the Red Lake District, Ontario, Sidace Lake is contiguous to Pacton’s current claim package (Figures 1 and 2) and is an advanced gold project with over 81,600 meters if historic drilling. Pacton will enter the joint venture as project Operator and plans to aggressively expand the mineralized zones at the project with exploration drilling.

 

About the Sidace Lake Property

 

The Sidace Lake Property is located 28 km north east of the town of Red Lake, at the northern extent of the Red Lake Greenstone belt. Historic drilling highlights are summarized in Table 1. Pacton intends to commence a expansion drilling program at the Sidace Lake Property while continuing the ongoing exploration program at its current Red Lake properties.

 

Dale Ginn, Executive Chairman commented “This is a great opportunity for Pacton. Sidace Lake is an exciting gold project with a clear path for potential growth.  It is directly adjacent to our existing Red Lake land package and we look forward to entering the JV, as operator, and working with Evolution Mining to advance the project.”

 

Table 1. Historic drill hole highlights from the Sidace Lake Project

 

 

Hole ID Year  From (m) To (m) Length (m) Au (g/t) Zone
RL-06-136 2006 553.0 576.0 23.0 24.9 Main Discovery Zone
RL-07-139 2007 335.2 338.8 3.6 36.5 Upper Duck Zone
RL-06-112 2006 523.0 541.0 18.0 11.7 Main Discovery Zone
RL-06-136 2006 691.0 692.0 1.0 83.2 Main Discovery Zone
RL-05-77 2005 249.0 253.0 4.0 12.0 Upper Duck Zone
RL-06-128 2006 468.0 500.0 32.0 5.8 Main Discovery Zone
RL-05-102 2005 252.0 254.0 2.0 11.3 Anderson Zone
RL-05-104 2005 40.0 43.0 3.0 4.0 Anderson Zone

 

 

Terms of the LOI

 

Under the terms of the LOI, which will be formalized by a definitive agreement to be entered into between the parties, the Company must pay and issue the following to TomaGold:

 

  • Upon final acceptance of the transaction by the TSX Venture Exchange, pay $250,000 and issue 10,000,000 common shares;
  • Within six months of TSXV acceptance, pay $250,000 and issue $800,000 worth of common shares at a price per share equal to the greater of $0.16 and the 5-day VWAP of the Company’s shares immediately preceding the date of issuance; and
  • Upon the Company filing a National Instrument 43-101 technical report on the Property showing a gold resource estimate of 750,000 oz AU or greater, issue 4,166,666 common shares.

 

TomaGold must receive the written approval of Newmont Corporation to the acquisition prior to entering into the definitive agreement.

 

The transaction is subject to the acceptance of the TSXV.

 

About Pacton Gold

 

Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high grade conglomerate and orogenic gold properties located in the district-scale Pilbara gold rush in Western Australia and the Red Lake District, Ontario.

 


Figure 1. Red Lake property map showing the location of Pacton’s mineral claims and the Sidace Lake joint venture. (CNW Group/Pacton Gold Inc.)

 

 


Figure 2. Geology map of the Sidace Lake project and Pacton’s Golden Loon property showing the location of the Main Discovery Zone, Upper Duck Zone, and Anderson Zone. (CNW Group/Pacton Gold Inc.)

 

Posted January 31, 2020

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