VANCOUVER, Jan. 31, 2020 /CNW/ - Pacton Gold Inc.
(TSXV: PAC, OTC: PACXF, FSE: 2NKN) (the "Company" or
"Pacton") is pleased to announce that it has entered into a
binding letter of intent (the "LOI") with TomaGold
Corporation (TSXV: LOT) ("TomaGold"), 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 (the "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 ("TSXV"), 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.
The technical content of this news release has been reviewed and
approved by Dale Ginn, P.Geo.,
Executive Chairman and 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. Verification of
the data is underway as part of the due diligence investigations
taking place in respect of the transaction.
On Behalf of the Board of Pacton Gold Inc.
R. Dale Ginn
Executive Chairman
This news release may contain or refer to forward-looking
information based on current expectations, including, but not
limited to 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. References to other issuers with nearby
projects 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/pacton-gold-to-acquire-jv-on-advanced-gold-project-at-red-lake-300996697.html
SOURCE Pacton Gold Inc.