VANCOUVER, May 28, 2018 /CNW/ - Pacton Gold Inc. (TSXV:
PAC, OTC: PACXF) (the "Company" or "Pacton") is
pleased to announce that it has entered into a binding letter of
intent ("LOI") to acquire 100% of the Friendly Creek
exploration license and mining leases ("Friendly Creek")
from Gardner Mining Pty Ltd ("Gardner Mining"), an
Australian proprietary limited exploration company and from
Darren White (together, the
"Vendors"). Five granted mining leases and one granted
exploration license comprise a total of 31.36
km2 (the "Property"). Friendly Creek is
historically one of the richest known areas for alluvial nuggets
within the Pilbara region, where a large amount of alluvial fine
grained gold to multiple considerable sized nuggets have been
recovered, 127 oz (in 1888) and 165 oz (in 1892) gold
nuggets (source: www.mindat.org/loc-272951.html).
Note: These samples are not indicative of the
mineralization hosted on the property.
Highlights of the Transaction:
- Strategic portfolio of 5 granted mining leases and 1
granted exploration license (31.36 km2).
- Mining leases provide the potential for immediate large scale
bulk sampling of mineralization, with existing on site
infrastructure including operational camp facility.
- Alluvial, eluvial and bedrock mining historical gold
workings extend over a 10 km strike.
- Directly adjacent to key exploration properties controlled by
Novo Resources Corp. and Kairos Minerals Ltd.
- Access to the extensive regional knowledge and technical
expertise provided by the Gardner Mining Team. Gardner is
comprised of corporate finance executives, geologists, prospectors,
and mining executives with strategic relationships to the local
communities in which it operates.
"The acquisition of the Friendly Creek Project, with granted
mining leases, clearly places Pacton with a strategic advantage
ahead of our peers in creating the opportunity to rapidly conduct
large scale bulk sampling programs. The historical discovery of
large gold nuggets at Friendly Creek in Western Australia, and an identified
mineralised strike length of 10 km, is compelling to justify an
upcoming intensive exploration program," commented Alec
Pismiris, Interim President and CEO of Pacton Gold. "We look
forward to working closely with the Gardner team, as we continue to
focus on understanding the true potential of our strategic
portfolio holdings and as we look to complete additional accretive
acquisitions."
About Gardner Mining Team
The director, management and associated consultants of Gardner
Mining have extensive local operating history within the Pilbara
region of Western Australia. The
team is comprised of corporate finance executives, geologists,
prospectors and mining executives, and has extensive ties to the
local communities where it operates. Gardner Mining will work
closely with Pacton as required to maximize the ongoing development
of their existing project portfolio and to identify further value
accretionary opportunities.
For location map of the Property, please see:
http://www.pactongold.com/Pacton-Location-Map.jpg.
Initial exploration activities planned to be undertaken
include:
- Comprehensive review of historical mining and exploration
activities conducted on the Property.
- Acquisition and interpretation of high resolution airborne
imagery to refine the palao drainage interpretation.
- Mapping of regolith, project geology and structural controls
relating to mineralization.
- Infill and extensional geochemical sampling targeting
gold.
- Metal detecting and small scale dry blowing to identify the
presence of surficial gold nuggets.
LOI Terms
Under the terms of the LOI, which will be formalized by a
definitive agreement among the parties, the Company will purchase a
100% ownership interest in Friendly Creek by paying the Vendors a
total of CDN$25,000 and issuing to
the Vendors 2,500,000 common shares of Pacton.
This transaction is subject to the acceptance of the TSX Venture
Exchange.
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
2,227 km2, and continues to aggressively review
additional accretive acquisitions.
The technical content of this news release has been reviewed and
approved by Peter Caldbick, P.Geo.,
a director of the Company and a Qualified Person pursuant to
National Instrument 43-101. The qualified person has not
visited the Friendly Creek site and therefore has not verified the
data disclosed, including sampling, analytical, and test data
underlying the information or opinions contained in the written
disclosure.
On Behalf of the Board of Pacton Gold Inc.
Alec Pismiris
Interim President & CEO
This news release may contain or refer to forward-looking
information based on current expectations, including, but not
limited to the Company acquiring an interest in properties/licenses
controlled by Gardner Mining and Darren
White completion of the proposed transaction described
herein, the prospect of the Company achieving success in exploring
the Property and the impact on the Company of these events,
including the effect on its share price. Forward-looking
information is subject to significant risks and uncertainties, as
actual results may differ materially from forecasted results.
Forward-looking information is provided as of the date hereof and
we assume no responsibility to update or revise such information to
reflect new events or circumstances. References to other issuers
with nearby projects (Novo Resources Corp. and Kairos Minerals
Ltd.) is for information purposes only and there are no assurances
the Company will achieve similar results.
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.
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SOURCE Pacton Gold Inc.