Arrow Minerals Ltd (ASX:AMD) has finalised and executed agreements for the sale and joint venture of the Pilbara Gold Project in Western Australia.
The 609 square kilometre project is prospective for conglomerate and basement gold targets, with prospectors discovering several gold nuggets at the project in late 2017.
Under the agreement, Pacton Gold Inc (CVE:PAC) can earn up to 80% in the project in two tranches.
READ: Arrow Minerals attracts Canadian interest in Pilbara region gold prospects
Pacton can acquire an initial 51% through staggered payments of C$500,000 in cash and 1.08 million Pacton shares and 1.08 million Pacton warrants.
After this is complete, Pacton can increase its ownership to 80% by incurring C$500,00 of expenditure within 12 months and issuing Arrow C$250,000 worth of shares.
Once Pacton has reached an 80% interest, Arrow will be free-carried for the first C$5 million of project expenditure.
Pacton supported by Sprott Capital Partners
This is Pacton’s second transaction in the Pilbara and follows an option agreement in February 2018 to acquire 100% of CTTR Gold Pty Ltd.
This demonstrates Pacton’s desire to be a significant gold explorer in the region.
Pacton appointed Sprott Capital Partners, a division of Sprott Private Wealth LP, to assist with marketing arrangements, including providing strategic capital advice.
Sprott is a well-known resources-focused asset management company.
READ: Arrow Minerals may have notched up another bullseye at Strickland
Arrow is currently undertaking a major aircore drilling program at the Strickland Gold Project in Western Australia covering the T8, T6, T2 and T1 prospects.
Drilling at the T8 prospect has been completed on a 400x80 metre basis over the entire 2.4-kilometre gold-in-soil anomaly.
All of the drill samples have been delivered to the assay laboratory in Perth and results from T8 are expected to be received shortly.
The major aircore program is estimated to comprise 26,000 metres of drilling.