VANCOUVER, Oct. 23, 2018 /CNW/ - Pacton Gold Inc.
(TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the "Company" or
"Pacton") is pleased to announce that it has entered into a
definitive agreement (the "Agreement") to acquire the
conglomerate gold rights ("Gold Rights") of Calidus
Resources Limited (ASX:CAI) in both the Marble Bar
sub-basin, and the Northeast Pilbara sub-basin of Western Australia's Pilbara craton. (Figure
1).
Subject to TSX Venture Exchange acceptance, the conglomerate
gold rights will be transferred to Pacton within 50 days.
The acquisition of the Calidus conglomerate gold rights is
strategically significant for Pacton, and is consistent with
Pacton's directed strategy of acquiring Fortescue Group exploration
conglomerate gold assets in parallel with its equally growing
portfolio of Mesoarchean and Paleoarchean orogenic "mother lode"
exploration projects.
Calidus is exploring for orogenic shear hosted gold deposits at
its Warrawoona Gold Project south of Marble Bar in the Paleoarchean
"basement rocks" of the Pilbara craton, which is excluded from the
Agreement with Pacton (Figure 2).
Pacton's Agreement with Calidus allows it to explore and exploit
any conglomerate or transported gold deposits in the sedimentary
rocks overlying the basement rocks in the Calidus holdings, which
are scattered from the town of Marble Bar to the Nulllalgine-Beaton
Creek area. The Fortescue Group formation that overlies the
basement rocks on the tenements covered by the Calidus Agreement
are composed entirely of outcropping Mount Roe
Basalt.
Pacton is currently conducting field exploration in the Mallina
Basin, on its Egina area properties, located approximately 200 km
west of the Marble Bar sub-basin. Field exploration will commence
on the Calidus project immediately following the transference of
the conglomerate rights to Pacton.
Three areas of the Calidus conglomerate gold right tenements
have already been targeted for exploration. Two areas are located
near the town of Marble Bar. The third area, an immediate priority,
consists of a portion of a north-pointing, 10 km long "spear" of
Mount Roe basalt, which is the northern extension of the Mount Roe
formation that underlies the Novo Resources Corp (NVO:TSXV)
conglomerates at Nulllagine and Beaton
Creek, located approximately 20 km to the south. The Pacton
portion of the "Spear", with a combined edge strike-length of about
15 km, covers an area of 20 km2, approximately the
same area as the Mount Roe surface exposure on Novo's Beaton Creek tenements. This is due to the fact
that the Mount Roe Basalt surface footprint at Novo's Beaton Creek project is covered by the overlying
Hardey formation conglomeratic members.
The preliminary targeting of the Calidus conglomerates is
unusually precise due to the favourable weathering characteristics
of the Pilbara and the differential silicification of known
conglomerate units. In other words, Pacton has recorded the
signatures of known Pilbara conglomerate deposits and has
prioritized similar signatures on its Calidus conglomerate targets,
including the "Spear".
A preliminary estimate of mapped Mount Roe Basalt in all Calidus
tenements includes approximately 50 linear km of Mount Roe edge
exposure and downhill talus slope, covering a total area of
approximately 90 square km. (Figures 3, 4, 5 & 6 showing
selected Mount Row features).
Conglomerate target planning will continue and field operations
will commence immediately following the transference of the
conglomerate gold rights from Calidus to Pacton.
Agreement Terms
Under the terms of the Agreement, the Company through its
wholly-owned Australian subsidiary, will acquire the Gold Rights by
issuing Calidus or its nominees 7,000,000 common shares. The
Agreement includes a right to deferred compensation whereby Calidus
may receive up to 3,000,000 additional common shares of Pacton on
the first anniversary of completion of the transaction based on the
30-day VWAP of Pacton's shares on the date of such issuance.
The Company will be seeking TSX Venture Exchange acceptance of
the transaction forthwith.
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 technical content of this news release has been reviewed and
approved Peter Caldbick, P.Geo., a
director of the Company and a Qualified Person pursuant to National
Instrument 43-101. The qualified person has not yet 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 contains or refers to forward-looking
information based on current expectations, including, but not
limited to the Company completion of the proposed transaction
described herein, the prospect of the Company achieving success in
exploring its properties 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.
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.