VANCOUVER, BC / ACCESSWIRE / October 19, 2022 / Pacton Gold Inc. (TSXV:PAC)(OTC PINK:PACXF)(FSE:2NKN) (the "Company" or "Pacton") is pleased to announce it has entered into a purchase agreement dated October 18, 2022 (the "Purchase Agreement") with Chesterfield Resources PLC ("Chesterfield") and its wholly owned subsidiary Chesterfield (Canada) Inc. ("Chesterfield Canada" and together with Chesterfield the "Vendor"), as well as a as well as a Transition Services Agreement dated October 18, 2022 (the "Transition Agreement") pursuant to which Pacton has agreed to acquire a 100% interest in the Adeline high-grade copper project (the "Adeline Project") in Labrador, Canada (Figure 1). Robust early-stage exploration has located over 250 copper occurrences, with assays ranging as high as 26.9% Cu. Subsequent data analysis has generated multiple, high priority, drill ready targets, and led by its highly experienced exploration team, subject to closing the acquisition, Pacton plans to commence drilling in Q1, 2023. The acquisition of the Adeline Project represents a Fundamental Transaction (as that term is defined in the policies of the TSX Venture Exchange ("TSXV") for Pacton.
Adeline Project Highlights:
District-Scale in Safe, Stable Jurisdiction. The 297 km2 Adeline Project is prospective for sediment hosted copper mineralization, which is notable for its high grade and lateral continuity. The district-scale Project hosts more than 250 known copper occurrences - part of the well mineralized Adeline Island Formation (Figure 2). The property is located in Labrador, Canada - highly ranked by the Fraser Institute for its investment attractiveness.
Recent Sampling Confirms High-Grade Copper in Drill-Ready Locations. Mapping and sampling undertaken by Chesterfield Resources in 2021 has confirmed the presence of high-grade copper mineralization at multiple key prospect areas (Table 1).
Robust Databank. Historical mapping, sampling and geophysical data has been compiled into a modern, robust databank, which will facilitate the identification of further, high-priority drill target areas, as well as under explored portions of the Project.
Nav Dhaliwal, Interim President and CEO for Pacton, commented, "We are thrilled to be acquiring the Adeline high-grade copper project. This is an ideal property for our technical team. Adeline has proven, high-grade copper showings which have been analyzed and prioritized to generate drill ready targets, and we also have a large databank ready for additional target generation. Essentially, we are taking on a district-scale copper project that is primed for rapid exploration."
Table 1. Highlights of historic sampling results at the Adeline Project.[2]
| Prospect | Sample Type | Width (m) | Cu (%) | Ag (g/t) |
|---|---|---|---|---|
| Adeline Island | Chip | 0.4 | 13.1 | 158.0 |
| Grab | - | 5.7 | 72.9 | |
| Grab | - | 2.5 | 20.3 | |
| Drill | 3.5 | 1.9 | 8.2 | |
| Adeline Mountain | Grab | - | 8.0 | 423.0 |
| Grab | - | 13.6 | 199.0 | |
| Grab | - | 9.3 | 122.0 | |
| Grab | - | 5.3 | 55.6 | |
| Chip | 0.6 | 6.1 | 84.9 | |
| Adeline River | Grab | - | 1.2 | 8.9 |
| Ellis | Grab | - | 6.0 | 73.8 |
| Grab | - | 4.9 | 192.0 | |
| Grab | - | 4.4 | 30.5 | |
| Chip | 1.0 | 2.8 | 227.0 | |
| Drill | 7.9 | 1.8 | 56.2 | |
| Drill | 4.3 | 1.7 | 51.8 | |
| Channel | 4.5 | 2.5 | 94.3 | |
| Duck | Grab | - | 4.4 | 24.1 |
| Seal | Grab | - | 26.9 | 16.5 |
| Chip | 2.50 | 2.8 | 5.4 | |
| Salmon | Grab | - | 5.6 | 15.2 |
| Whiskey | Grab | - | 5.5 | 135.0 |
| Chip | 2.00 | 4.4 | 63.4 | |
| Grab | - | 4.7 | 63.7 |
Terms of the Acquisition
As consideration for the acquisition of the Adeline Project, the Company will under the terms of the Purchase Agreement pay a total of $1,250,000 in stages over a one year period ($50,000 paid to date) and issue approximately 54,482,310 common shares to the Vendor, such that the Vendor will hold approximately 19.99% of the total issued and outstanding shares of the Company on completion of the transaction. Chesterfield will have the right to nominate one board member to Pacton's Board of Directors provided it holds not less than 10% of Pacton's issued and outstanding shares. The Adeline Project is subject to an underlying 1.6% gross smelter returns royalty. Under the terms of the Transition Agreement, Pacton will pay an additional $300,000 in stages over a one year period in consideration of Chesterfield assisting with the orderly transition of the Adeline Project to Pacton. This will include assisting Pacton with preparation and filing of an independent NI 43-101 technical report on the Adeline Project, completing all mineral claims transfers, introducing Pacton to service providers and dealing with the royalty holders.
The acquisition of the Adeline Property is subject to several conditions precedent, including the completion of an equity financing by Pacton to fund exploration and development of the Adeline Project, and approval to the acquisition by the TSXV.
About Pacton Gold
Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high-grade mineral resource properties in Ontario, Canada. The Company also owns a strategic portfolio of prospective projects in Western Australia.
The technical content of this news release has been reviewed and approved by Dale Ginn, P.Geo., Executive Chairman and a director, and Karly Oliver, P.Geo., Vice President, Exploration and a director of the Company, who are both Qualified Persons pursuant to National Instrument 43-101.
On Behalf of the Board of Pacton Gold Inc.
Nav Dhaliwal
Interim President and CEO
For more information, please contact 1-(855)-584-0258 or [email protected].
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
[1] References to nearby properties are for information purposes only, and there are no assurances that the Company will achieve similar results at the Adeline Project.
[2] This sampling data was provided by Chesterfield to the Company, and the Company's qualified persons have not conducted sufficient review to confirm the information. However, the Company believes the data to be relevant and reliable as it was completed by geologists from Mercator Geological Services during July 2021 to September 2021, on behalf of Chesterfield.
SOURCE: Pacton Gold