Arrow Minerals sells remaining interest in Pilbara Gold Project to Pacton Gold
Arrow owns several exploration projects in WA
Arrow will receive C$1 million in cash and 2 million Pacton shares in the agreement, while retaining all rights to explore, mine and extract lithium, caesium and tantalum from the project.
Following the transaction, Arrow will own over 3 million ordinary Pacton shares and over 1 million warrants totalling $1.8 million in market value.
Arrow managing director Steven Michael said the agreement was a great outcome for both companies.
He said: “Pacton can continue to consolidate, expand and explore its large tenement position in the Pilbara region, while Arrow will benefit from owning approximately 3.3% of the issued capital of Pacton.
“The cash payment of C$1 million will be used to fund Arrow’s exploration activities at the Strickland Gold Project, where the recent drilling program has intersected considerable bedrock gold mineralisation and confirmed the gold-bearing potential of this project.”
The project consists of two exploration licences and two exploration licence applications, covering 609 square kilometres in Western Australia’s Pilbara Region.
Arrow sold a 51% interest in the project to Pacton in May and entered into a joint venture in which Pacton could increase its interest to 80% through expenditure and payment obligations.
The $1 million cash payment will be made through a staged process, with Arrow receiving C$200,000 upon granting of the exploration licence applications and C$100,00 paid on the grant of each application.
A further C$500,000 will be paid upon Pacton publishing a gold resource of over 100,000 ounces in accordance with NI43-101
The share sale agreement has been submitted to the TSX Venture Change for final acceptance, after which the consideration is payable within 10 days with an escrow period to 30 June 2019.