In a move to add to its already large land position in Australia, Pacton Gold (TSX-V:PAC)(OTCPK:PACXF) said Wednesday that it signed a binding letter of intent to acquire 100 percent of the Bellary Dome exploration license 47.2555 from Marindi Metals (ASX:MZN) for C$2.0 million in cash, 10.1 million shares of common stock and another C$2.0 million in either cash or stock. C$2.0 million and the stock will be due at the closing of the transaction with the final two million dollars (either cash or stock) due at the 12- and 18-month anniversaries of the closing of the transaction.
Located on the southern margin of the Hamersley Basin and surrounded by Novo Resource's (TSX:NVO) projects, the Bellary Dome property covers about 25 kilometers of strike extent of the basal contact of the Mt. Roe Basalt over top of the Bellary Formation, an area of recent mineral discoveries. Widespread fine visible gold has been noted across the property.
Further evidence of the potential of the property is provided from alluvial gold workings and prospecting pits that have unearthed gold values up to 38.2 g/t gold. Over six ounces of coarse nuggets were recovered from one alluvial "trap site" located downslope from the Bellary Formation conglomerate.
Simon Lawson, Managing Director at Marindi, says that their work at Bellary Dome has only just begun to highlight the potential for the property to be a piece of the large, prolific Pilbara region of Western Australia. For Pacton, the acquisition fits in perfectly to their growing portfolio in the Pilbara region that, at 2,227 square kilometers, qualifies as the third largest conglomerate-hosted gold property portfolio in the district-scale gold rush.
Shareholders have been applauding the efforts of Pacton lately, driving shares up from a low of 24 cents in April to as high as $1.02 last month. A pullback ensued taking shares back down to as low as 41 cents at the start of the month, but the stock is again on the rise, including gaining 11.9% on Wednesday to close at 75 cents.
