Arrow Minerals Ltd (ASX:AMD) expects to receive consideration within 10 business days from the sale of its 49% interest in the Pilbara Gold Project in Western Australia to Canadian company Pacton Gold Inc (CVE:PAC).
This follows Pacton receiving final acceptance from the TSX Venture Exchange for the share sale agreement.
The consideration is C$1 million in cash and 2 million Pacton shares, currently valued at around C$800,000.
These shares are subject to a voluntary escrow period to June 30, 2019.
In addition, Pacton will pay Arrow C$200,000 upon granting of the exploration licence applications, with C$100,000 paid on the grant of each application.
Arrow will also receive a discovery bonus of C$500,000 in cash upon Pacton publishing a gold resource at the project of more than 100,000 ounces in accordance with Canada’s NI 43-101 code.
The company also retains all rights to explore, mine and extract lithium, caesium and tantalum from the project.
Following completion of the transaction, Arrow will own more than 3 million ordinary shares and more than 1 million warrants in Pacton, with a current value of more than C$1.6 million.
Arrow managing director Steven Michael previously 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 recent drilling has intersected considerable bedrock gold mineralisation and confirmed the gold-bearing potential of this project.”