Pacton Gold Arranges $2.5m Financing

Rhea-AI Summary

Pacton Gold Inc. (PACXF) announced a non-brokered private placement of 10,000,000 common shares at $0.25 per share, totaling $2,500,000 in gross proceeds. Funds will be allocated to acquire the Adeline Project, exploration, development activities, and general working capital. The offering is subject to TSX Venture Exchange approval. Pacton has entered a purchase agreement for a 100% interest in the Adeline copper project, pending regulatory approval. All issued securities will be under a four-month hold period.

Positive

• Secured a private placement totaling $2,500,000, which supports acquisition and development of the Adeline Project.
• Acquisition of a 100% interest in the high-grade Adeline copper project could potentially enhance resource portfolio.
• Conditional acceptance from TSX Venture Exchange indicates progress in regulatory approvals.

Negative

• No assurance of successful completion of the private placement or acquisition despite positive outlook.

VANCOUVER, BC / ACCESSWIRE / November 25, 2022 / Pacton Gold Inc. (TSXV:PAC)(OTC PINK:PACXF)(FSE:2NKN) (the "Company" or "Pacton") is pleased to announce that it has arranged a non brokered private placement of 10,000,000 common shares (each a "Share") at a price of $0.25 per Share for total gross proceeds of $2,500,000 (the "Offering").

Red Cloud Securities Inc. ("Red Cloud") will be acting as a finder for the Offering on behalf of the Company. The Company will pay finders' fees to Red Cloud and others pursuant to the policies of the TSX Venture Exchange.

Proceeds from the Offering will be used to complete the acquisition of the Adeline Project (see news releases dated October 19, 2022 and November 16, 2022), to commence exploration and development on the Adeline Project and for general working capital.

The closing of the Offering will be subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSXV Venture Exchange.

All securities issued under the placement will be subject to regulatory hold periods expiring four months and one day from the date of issue.

About Pacton Gold

Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high-grade mineral resource properties in Ontario, Canada. Pacton Gold has entered into a purchase agreement dated October 18, 2022, with Chesterfield Resources PLC and its wholly owned subsidiary Chesterfield (Canada) Inc. pursuant to which Pacton Gold has agreed to acquire a 100% interest in the Adeline high grade copper project in Labrador, Canada (see news releases dated October 19, 2022 and November 16, 2022), and is in the process of seeking regulatory approval of such acquisition. The Company also owns a strategic portfolio of prospective projects in Western Australia.

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.

Pacton has entered into a purchase agreement date October 18, 2022 with Chesterfield Resources PLC and its wholly owned subsidiary Chesterfield (Canada) Inc. pursuant to which Pacton has agreed to acquire a 100% interest in the high grade Adeline copper project in Labrador, Canada, and is in the process of seeking regulatory approval of such acquisition. The private placement disclosed in this news release is a condition of closing the acquisition, and while Pacton is confident of receiving approval to the acquisition (having received conditional acceptance from the TSX Venture Exchange), and is also confident of its ability to close the private placement, there is no assurance that it will be successful in doing so. Neither TSX Venture 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.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

SOURCE: Pacton Gold

View source version on accesswire.com:
https://www.accesswire.com/728364/Pacton-Gold-Arranges-25m-Financing

FAQ

What is the purpose of Pacton Gold's recent private placement?

Pacton Gold's private placement aims to raise $2.5 million for acquiring the Adeline Project, exploration, and general working capital.

How many shares is Pacton Gold offering in its private placement?

Pacton Gold is offering 10,000,000 common shares at a price of $0.25 per share.

What is the total amount Pacton Gold expects to raise from the private placement?

Pacton Gold expects to raise a total of $2,500,000 from the private placement.

What is the Adeline Project that Pacton Gold is acquiring?

The Adeline Project is a high-grade copper project located in Labrador, Canada.

What are the conditions for the closing of Pacton Gold's private placement?

Closing of the private placement is subject to receiving necessary approvals, including from the TSX Venture Exchange.