The project has historical production of about 185,000 ounces of gold from small shafts and related underground workings.
Impact has also applied for an adjacent exploration licence for a total area of 91 square kilometres, together named the Blackridge Gold Project.
Agreement to sell Pilbara Gold Project
Impact will receive C$350,000 cash and 2.125 million Pacton shares, which have a current value of A$1.7 million.
The company can also receive C$500,000 cash for the discovery of an Inferred Resource of over 250,000 ounces of gold and retains a 2% smelter royalty subject to buyback.
The final share sale agreement and approval is subject to approval from the Canadian exchange.
Previous explorers underestimated nugget effect
Impact’s managing director Dr Mike Jones said: “These transactions confirm our belief in the potential for the discovery of another major conglomerate-hosted gold deposit in Australia following the extraordinary discovery by Novo Resources Corporation and Artemis Resources Limited in the Pilbara, the magnitude of which is still poorly understood by most.
“In the late 1800’s and early 1900’s the Blackridge area in Queensland produced over 185,000 ounces of gold from Permian conglomerates down to about only 70 metres below surface and we believe, based on the on-going work in the Pilbara by Novo, previous explorers have potentially significantly underestimated the nugget effect.
Leveraged to Pacton’s success through shareholding
Jones added: “In addition we have recently met with the management and backers of Pacton Gold and were impressed with their track records, their business plan for conglomerate-gold exploration in the Pilbara and also their ability to raise significant capital.
“This includes C$2 million from Eric Sprott, a major direct and indirect shareholder in Novo Resources, as part of a C$5.5 million raising.
“Given the advanced nature of our new Queensland project, it is only appropriate that we focus our conglomerate-gold exploration activities there whilst still retaining significant upside in the Pilbara in the form of a valuable shareholding in Pacton, a potential Discovery Bonus and a royalty.”
$30,000 option cost and $200,000 exercise cost
The option is exclusive and lasts for 18 months to acquire 95% of four mining lease applications and one exploration licence.
The option was purchased for $30,000 and if exercised, Impact will pay $200,000.