Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) has expanded its footprint in the Red Lake District in Ontario, a name synonymous with Canadian gold mining.
The Vancouver-based firm is set to buy a further 1,760 hectares (Ha) in the area after it struck an acquisition deal with Frontline Gold Corporation (CVE: FGC) over a property.
The property consists of 88 mineral claims.
Pacton will satisfy the transaction by issuing 192,310 of its shares, once it receives TSX Venture Exchange approval.
The property is subject to net smelter return (NSR) royalties totalling 2.25% and Pacton has the option to buy back a portion of the royalties for $250,000.
The prolific Red Lake mining district in Canada has produced more than 30 million ounces of the yellow metal.
It also benefits from major active mining operations including the Red Lake Gold Mine of Goldcorp Inc (NYSE:GG), plus modern infrastructure and a skilled workforce.
Shares in Toronto slipped 1.9% to $0.27.
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