Pacton Gold Inc. is acquiring a 100% stake in Drummond East Pty. Ltd., which holds seven granted tenement licenses covering 1,126 square kilometers in Western Australia.
The company said May 22 that it entered into a binding letter of intent with Impact Minerals Ltd. to purchase Drummond East for C$350,000 cash and 2,125,000 common shares.
The deal also includes a C$500,000 payment on the delineation of a 250,000-ounce resource as well as a 2% net smelter royalty on the property, half of which is purchasable for C$500,000.
The acquisition will make Pacton the third-largest landholder in the Pilbara, with a portfolio of about 2,227 square kilometers.
