PERTH (miningweekly.com) – Junior Arrow Minerals has struck a deal with TSX-V-listed Pacton Gold to divest of its remaining 49% interest in the Pilbara gold project, for C$2-million.
The consideration will consist of C$1-million in cash and two-million Pacton shares.
“The agreement entered into with Pacton over the remaining 49% interest in the Pilbara gold project is a great outcome for both companies,” said Arrow MD Steven Michael.
“Pacton can continue to consolidate, expand and explore its large tenement position in the Pilbara region, while Arrow will benefit from owning a near 3.3% interest in the issued capital of Pacton.”
Michael said that the cash payment will be used to fund Arrow’s exploration activities at the Strickland gold project, where the recent drilling programme intersected considerable bedrock gold mineralisation and confirmed the gold-bearing potential of the project.
In addition to the consideration, Arrow will retain the right to explore, mine and extract lithium, caesium and tantalum from the project area, while also receiving a discovery bonus of C$500 000 in cash on Pacton establishing a gold resource at the project over 100 000 oz.
Pacton will also pay Arrow C$200 000 on the grant of the exploration licence applications, with C$100 000 payable on the grant of each application.