Shares of Pacton Gold Inc (CVE:PAC) (OTC:PACXF) perked up on Monday after the company announced it intends to acquire the conglomerate gold rights from Calidus Resources Limited (ASX:CAI) over a portfolio of eight exploration licenses.
The gold rights relate to material that overlies the basement rocks and that is formed of transported material. This means the Fortescue Group conglomerates that over-lie the Warrawoona Greenstone belt. The portfolio includes six granted exploration licenses and two exploration licenses under application for a total of 357.5 sq/km.
"Securing the conglomerate gold rights over this significant portfolio of tenements from Calidus further consolidates Pacton's position in the Pilbara region of Western Australia," said Alec Pismiris, Interim President and CEO of Pacton.
Shares perked up 5.5% at C$0.48 in Toronto.
Under the terms of the letter of intent, which will be formalized by a definitive agreement among the parties, Pacton will pay a non-refundable payment of C$10,000 and issue 7,000,000 common shares.
The letter of intent includes a right to deferred compensation. Calidus may receive up to 3,000,000 additional common shares of Pacton on the first anniversary of completion of the transaction based on the 30-day volume weighted average price of Pacton's shares on the date of such issuance.
The gold rights encompass eight tenements that cover all known Mt Roe basalt occurrences on Calidus' tenements. In total, the tenements have 40 km of outcropping Mt Roe basalt that have seen limited exploration, according to Pacton.
The Marble Bar application lies along strike from Haoma Mining's Just in Time prospect, where there has been a discovery of numerous gold nuggets.
The Callidus Warrawoona project is an orogenic deposit which is currently being aggressively drilled. Warrawoona's global resource is currently represented as 10.5M tonnes @ 2.11g/t Au for 712,000 ounces of gold.