leadf
logo-loader
viewArrow Minerals Ltd
(
ASX:AMD
)

Arrow Minerals sells remaining interest in Pilbara Gold Project to Pacton Gold

The company will retain rights to explore and extract lithium and post-transaction will hold a 3.3% interest in Pacton.

1534991110_M&A.jpg
Arrow owns several exploration projects in WA

Arrow Minerals Ltd (ASX:AMD) has sold its remaining 49% interest in the Pilbara Gold Project to Canadian company Pacton Gold Inc (TSX:PAC).

Arrow will receive C$1 million in cash and 2 million Pacton shares in the agreement, while retaining all rights to explore, mine and extract lithium, caesium and tantalum from the project.

Following the transaction, Arrow will own over 3 million ordinary Pacton shares and over 1 million warrants totalling $1.8 million in market value.

READ: Arrow Minerals to pass on tax credits to shareholders, T1 assays pending

Arrow managing director Steven Michael said the agreement was a great outcome for both companies.  

He said: “Pacton can continue to consolidate, expand and explore its large tenement position in the Pilbara region, while Arrow will benefit from owning approximately 3.3% of the issued capital of Pacton.

“The cash payment of C$1 million will be used to fund Arrow’s exploration activities at the Strickland Gold Project, where the recent drilling program has intersected considerable bedrock gold mineralisation and confirmed the gold-bearing potential of this project.”

READ: Arrow Minerals drills out gold in three targets at T2 prospect

The project consists of two exploration licences and two exploration licence applications, covering 609 square kilometres in Western Australia’s Pilbara Region.

Arrow sold a 51% interest in the project to Pacton in May and entered into a joint venture in which Pacton could increase its interest to 80% through expenditure and payment obligations.

READ: Arrow Minerals gains Croesus Mining Pty Ltd as a new substantial shareholder

The $1 million cash payment will be made through a staged process, with Arrow receiving C$200,000 upon granting of the exploration licence applications and C$100,00 paid on the grant of each application.

A further C$500,000 will be paid upon Pacton publishing a gold resource of over 100,000 ounces in accordance with NI43-101

The share sale agreement has been submitted to the TSX Venture Change for final acceptance, after which the consideration is payable within 10 days with an escrow period to 30 June 2019.

Quick facts: Arrow Minerals Ltd

Follow
ASX:AMD

Price: 0.006 AUD

Market Cap: $10.96 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Arrow Minerals sharpens focus on Africa exploration following lithium...

Arrow Minerals Ltd (ASX:AMD)'s Howard Golden speaks to Proactive soon after announcing they've partnered with Electrostate Pty Ltd to advance its Malinda lithium project in Western Australia under an earn-in agreement. Ultimately, the binding term sheet allows the private company to earn up to...

on 25/8/21

2 min read