Pacton Gold seeks to acquire a 100% stake in the Swain property by paying $39,268 and issuing an aggregate of 550,000 common shares over two years
Pacton Gold seeks to acquire additional properties in Red Lake, Ontario. (Credit: Pacton Gold)
Pacton Gold, a Canadian junior exploration company, has signed option agreements with an undisclosed company to acquire the latter’s mineral claims in the Red Lake District, Ontario in Canada.
Under the terms of the agreements, Pacton Gold will option a 100% stake in the Swain property by paying a total of C$55,000 ($39,268) and issuing an aggregate of 550,000 common shares over two years.
Additionally, Pacton Gold will pay a total of C$36,000 ($25,702) and issue an aggregate of 300,000 common shares over two years to earn a 100% interest in the Red Lake West property.
The undisclosed company, however, will retain a 1.5% net smelter returns royalty on the Swain and the Red Lake West properties.
Pacton will have the option to purchase half of the royalties of the Swain property and Red Lake West property for C$500,000 ($356,984) and C$400,000 ($285,587) respectively.
Red Lake West property is contiguous to existing Red Lake properties of Pacton Gold
The 611ha Red Lake West property is contiguous to Pacton’s existing Red Lake properties and in the vicinity of Pacton’s ongoing drill programme at the LP extension targets.
Located 80km northeast of Red Lake, the 4,161ha Swain property lies along the Birch-Uchi greenstone belt. It is said to be home to historic mineral showings, including grab samples of up to 15.8 grams per ton gold.
Last year, Pacton Gold has obtained an exploration drilling permit for the Red Lake Gold project from the Ontario Ministry of Northern Development and Mines.
The permit allows the company to conduct diamond drilling and outcrop cleaning and stripping at the Red Lake Gold project.