Pacton Gold (PAC.V) continues to expand its land position in Western Australia’s Pilbara region with the recently announced acquisition of the Bellary Dome project. Bellary Dome is located a few hundred kilometers towards the south from where the majority of Pacton’s and Novo’s claims are, but appears to be surrounded by another Novo claim as well.
Pacton was interested in this exploration license after an exploration program in May by its current owner, Marindi Metals (ASX:MZN), resulted in recovering 6 ounces of gold nuggets from an alluvial site. The nuggets appear to be the typical ‘watermelon seeds’ Novo Resources uses to describe its gold finds. According to Pacton, the Bellary Dome project, the stratigraphic position of the of the conglomerates is similar to Novo’s Comet Well and Purdy’s Reward zones, whilst the Bellary Dome zone also hosts several kilometers of the Hardey Formation.
This piece of real estate appears to be quite expensive, as Pacton Gold has to pay C$2M in cash and issue almost 10.1M shares. On top of that, Pacton has to issue C$1M worth of stock on the 1st and 2nd anniversary of the deal, which brings the total cost at C$10M. Surprisingly, Marindi Metals hasn’t even announced the sale of the property yet on its own website (but did file it with the ASX), which is weird considering the total purchase cost of C$10M represents approximately half of its own market capitalization…
Go to Pacton’s website
The author has a long position in Pacton Gold. Pacton Gold is a sponsor of the website. Please read the disclaimer
