Through a binding letter of intent (LOI), Pacton Gold (TSXV:PAC) has acquired 100 percent of Drummond East, an Australian exploration company owned by Impact Minerals (ASX:IPT).
This acquisition sets Pacton up to receive around 1,126 square kilometers of property, making the company the third-largest landholder in Australia’s Pilbara region. In total, the company now has roughly 2,227 square kilometers in its portfolio.
The LOI entails a payment of C$350,000 to Impact, and Pacton will also issue 2,125,000 common shares to Impact. Additionally, Pacton will pay Impact C$500,000 if it publishes measured, indicated or inferred gold resources of 250,000 ounces or more for Drummond East.
Drummond East has seven fully granted licenses, now owned by Pacton, that border projects from companies like Novo Resources (TSXV:NVO) and Kairos Minerals (ASX:KAI).
Previous exploration at Drummond East has indicated great potential, specifically to the west and east of the Marble Bar area, and also close to the Beatons Creek gold deposit near Nullagine. Results of up to 11.2 g/t gold have been found at the Glen Herring prospect, located 10 kilometers west of Marble Bar.
The Pilbara region has recently become a major gold hotspot, with Novo and its joint-venture partner Artemis Resources (ASX:ARV) unearthing gold nuggets up to 4 centimeters long last summer at the Purdy’s Reward site in the West Pilbara.
Other companies began rushing to the area when Novo referred to the site as “analogous” to South Africa’s Witwatersrand, a formation home to the world’s biggest gold reserves.
Pacton’s share price was up 30.61 percent for the week as of 4:00 p.m. PST on Thursday (May 24), trading at AU$0.64. Meanwhile, gold was sitting at US$1,304.60 per ounce.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
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