Clancy Exploration Ltd. said Oct. 11 that it entered into a binding letter of intent with Pacton Gold Inc. for the latter to acquire 70% in Clancy's Hong Kong gold project in Western Australia's Pilbara region.

Pacton will pay C$1.7 million in cash and shares for the property.

Pacton and Clancy will enter into a joint venture, with Pacton acting as operator of the project upon deal completion. Pacton must spend a minimum C$500,000 within two years of closing.