Under the agreement, Pacton will pay C$175,000 in cash and 3.8 million in shares for the Hong Kong project, which is adjacent to its Friendly Creek and Golden Palms projects at the Egina gold area of Western Australia.
The transaction is subject to approval by the TSX Venture Exchange. When the deal is completed, Pacton Pilbara Pty Ltd and Clancy Exploration will form a joint venture, with the former operating the Hong Kong project. A finder’s fee will be paid to Geonomics Australia Pty Ltd, a geological consulting firm.
Last month, Pacton reported finding gold nuggets at six locations on its Friendly Creek land.
Shares of Pacton were unchanged at C$0.28 in Friday’s Canadian trading. They slipped almost US$0.01 to US$0.20 on the OTC market.
Contact Dennis Fitzgerald at [email protected]