Pacton Gold Inc (CVE:PAC) (OTCMKTS:PACXF) told investors Thursday that it has now struck a definitive deal to become a joint venture partner in the Sidace Lake advanced gold property.
The project is contiguous to the company's current claims in Red Lake, Ontario.
There are several aspects to the terms of the deal, including upon acceptance by the Toronto venture exchange, that Pacton will pay TomaGold C$250,000 and issue 10 million of its shares.
Within six months of the exchange acceptance, Pacton must also pay C$250,000 and issue C$800,000 worth of shares at a price per share equal to the greater of C$0.16 and the 5-day volume weighted average price (VWAP) of the company's shares immediately preceding the issue date.
Also when Pacton files an NI 43-101 technical report showing a gold resource estimate of 750,000 ounces of gold or greater, it must issue a further 4.16 million shares to the vendor.
The Sidace Lake property lies 28 kilometres northeast of the town of Red Lake, at the northern extent of the Red Lake Greenstone belt. The project already boasts over 81,600 meters of historic drilling.
Pacton will become the operator and plans to aggressively expand the mineralized zones at the project with exploration drilling.
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