Pacton Completes Vend of Pilbara Properties

Rhea-AI Summary

Pacton Gold Inc. has finalized an agreement to vend 75% of three properties in its Western Australian Pilbara portfolio to Raiden Resources Limited. The agreement, initially disclosed on October 13, 2020, is now completed following the transfer of necessary documentation. Pacton will receive CDN$500,000 upfront and another CDN$500,000 on the first anniversary of the transaction. Additionally, Pacton retains a 25% carried interest, which could lead to a joint venture if a mineral resource of at least 250,000 oz of gold is identified.

Positive

• Completion of agreement to vend 75% of properties provides immediate cash inflow of CDN$500,000.
• Potential for an additional CDN$500,000 payment on the first anniversary enhances liquidity.
• Retained 25% interest in properties allows for future financial upside upon mineral resource discovery.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / February 16, 2021 / Pacton Gold Inc. (TSXV:PAC)(OTC:PACXF)(FSE:2NKN) (the "Company" or "Pacton") announces that further to its news release of October 13, 2020, it has completed an agreement to vend 75% of three of its properties within its Western Australian Pilbara portfolio (the "Properties") to Raiden Resources Limited, an Australian Stock Exchange listed company (ASX:RDN) ("Raiden").

All conditions precedent including provision of signed transfers, all mining information and statutory consents have now been delivered. Raiden is in the process of issuing the 129,721,250 shares and arranging the payment of CDN$500,000 to Pacton in satisfaction of its obligations under the agreement.

Pacton will receive a further payment of CDN$500,000 on the first anniversary of completion of the transaction. Pacton retains a 25% carried interest in the Properties until such time as a mineral resource of at least 250,000 oz of gold at a minimum grade of 1 g/t is delineated on any of the Properties, at which time the parties will enter into a joint venture, under which Pacton can contribute proportional to its respective equity interest or dilute.

The Company will pay a finder's fee with respect to the transition to Cobra Investments (Aust) Pty Ltd, upon acceptance of the TSX Venture Exchange.

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.

On Behalf of the Board of Pacton Gold Inc.

Nav Dhaliwal
Interim President and CEO

For more information, please contact 1-(855)-584-0258 or info@pactongold.com.

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.

SOURCE: Pacton Gold

View source version on accesswire.com:
https://www.accesswire.com/629808/Pacton-Completes-Vend-of-Pilbara-Properties

FAQ

What properties did Pacton Gold vend to Raiden Resources?

Pacton Gold vend 75% of three properties in its Western Australian Pilbara portfolio to Raiden Resources.

How much will Pacton Gold receive from the deal with Raiden Resources?

Pacton Gold will receive CDN$500,000 upfront and an additional CDN$500,000 on the first anniversary of the transaction.

What happens if Pacton Gold identifies a mineral resource?

If a mineral resource of at least 250,000 oz of gold is found, Pacton Gold can enter into a joint venture regarding the properties.

When was the agreement with Raiden Resources announced?

The agreement was first announced on October 13, 2020.

What is the ticker symbol for Pacton Gold?

The ticker symbol for Pacton Gold is PACXF.