Pacton Gold has signed an option agreement with Frontline Gold to acquire a 100% interest in three minteral assets in the Red Lake mining district of north-western Ontario.
Pacton says that the area is home to some of the richest gold deposits in the world, producing over 25 million ounces from high-grade zones.
The three mineral claims are subject to multiple underlying royalties, including net smelter returns royalties to be paid to Frontline. Under the agreement, Pacton will be required to issue 2.5 million common shares and make a payment of CDN$200,000 over a two-year period.
Pacton president and CEO Dominic Verdejo said: “We are pleased to have secured a strategic land package proximal or immediately adjacent to multiple operating gold mines and gold deposits in the prolific Red Lake Gold District in north-western Ontario.
“The land package significantly elevates our gold property portfolio and positions Pacton as a key exploration player in the Red Lake Gold Camp.”