Arrow Minerals has made an agreement with TSXV-listed Canadian junior Pacton Gold for the latter to acquire an 80 per cent interest in Arrow Minerals’ subsidiary Arrow Pilbara.
Arrow Pilbara holds two exploration licences and two further applications in the Pilbara region of Western Australia. Under the terms of the agreement, Pacton can earn an initial 51 per cent majority by paying $C500,000 ($500,000) in cash and $C250,000 in shares.
Pacton can then increase ownership from 51 per cent to 80 per cent following the first tranche by spending $C500,000 on exploration within 12 months and issuing $C250,000 in company shares to Arrow at a five-day weighted volume.
The company will lay out an initial non-refundable deposit of $C25,000, followed by $C75,000 upon TSXV acceptance, $C200,000 cash and $C250,000 in shares within 60 days of said acceptance, and a final $C200,000 upon grant of exploration licences.
Should Pacton discover a gold resource of over 100,000 ounces (oz) in accordance with the Canadian National Instrument 43-101 rules (equivalent to Australia’s JORC Code), Arrow will also receive a discovery bonus of $C500,000 in cash.
Alec Pismiris, interim president and chief executive officer of Pacton Gold said the company was pleased to be able to partner with Arrow Minerals.
“[They] have been able to assemble a significant portfolio of advanced gold projects with excellent prospectivity that will provide key exploration and discovery upside for the shareholders of Pacton,” he explained. “Pacton’s Pilbara gold project is fast becoming one of the most significant in the Pilbara region.”
Asset management firm Sprott is to oversee the deal through subsidiary Sprott Capital Partners, offering capital advice and arranging marketing assistance for Pacton.