Pacton enters option agreements to acquire mineral claims in Red Lake

Pacton Gold Inc. has recently announced the signing of option agreements to secure additional mineral claims located in the Red Lake, Ontario.

Red Lake West, the 1st new property, is contiguous to the existing land package of Pacton, close to its ongoing drill program. Swain, the 2nd property, is located 80 km northeast of the Red Lake. It recorded up to 15.8 g/t Au of historical surface showings. The recent mineral claims increase the land position of Pacton by 4,772 hectares in the district, totaling to 28,072 hectares.

The Swain property covers 4,161 hectares, which is underlain by the Birch-Uchi greenstone belt’s mafic and felsic metavolcanic rocks. It is greater than the Swain Lake deformation zone by 11 km. Various historic mineral showings are recorded on this property, including grab samples of up to 15.8 g/t Au. On the other hand, the Red Lake West property covers an area of 611 hectares. It is in the vicinity of the ongoing drill program of Pacton, which is at the LP extension targets.

Under the recent option agreements, Pacton will obtain all the property of Swain at the total sum of $55,000. It will also issue an aggregate common share of 550,000 over a 2-year period. A 1.5% royalty on net smelter returns will be retained by the optionor on the Swain property. Half of the property is likely to be acquired by paying a sum of $500,000.

Additionally, the company will also gain the whole property of Red Lake West at the sum of $36,000. It will also issue an aggregate common share of 300,000 over a 2-year period. A net smelter royalty of 1.5% will be retained by the optionor on the Red Lake West property. Half of the property may be purchased for the sum of $400,000.

These transactions of the option contract are subject to the TSX Venture Exchange’s acceptance.

Source credit:

https://www.pactongold.com/news-and-media/news/pacton-gold-acquires-additional-properties-in-red-lake-ontario