03:43:01 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Pacton Gold Inc
Symbol PAC
Shares Issued 239,737,949
Close 2020-05-26 C$ 0.07
Market Cap C$ 16,781,656
Recent Sedar Documents

Pacton to roll back shares one for 10, raise $5M

2020-05-27 08:48 ET - News Release

Mr. Dale Ginn reports

PACTON ENTERS INTO $2.1 MILLION FINANCING PACKAGE WITH SANDSTORM GOLD LTD. AND ARRANGES CONCURRENT PRIVATE PLACEMENT OF $5,000,000 AND SHARE CONSOLIDATION

Pacton Gold Inc. has entered in a $2,155,000 financing package with Sandstorm Gold Ltd., which includes the purchase of royalties by Sandstorm on all of Pacton's mineral properties and significant participation by Sandstorm in a $5-million private placement being undertaken by the company. The net proceeds from the royalty sale and the private placement will be used to finance continued exploration and development activities at the company's Red Lake and Australian properties and for general working capital.

Dale Ginn, the company's executive chairman, stated: "We are very pleased to be entering into this long-term partnership with Sandstorm Gold. Our technical team is going to be hard at work over the coming period as we advance our projects in Canada and Australia. Thanks to the recent acquisitions, we have a land package of more than 28,000 hectares in the prolific high-grade gold district of Red Lake, Ont., where we expect to continue drilling this summer as well as conducting field work on the new claims. We also have comprehensive programs planned for our attractive land package in Western Australia, focusing along strike from De Grey Mining Ltd.'s new Hemi deposit with shear-hosted mineralization as well as gold-bearing gravels in the Egina district."

Share consolidation

The company advises that prior to completion of the private placement and pursuant to a resolution of the board of directors of the company, the company will consolidate its common shares on a one-for-10 basis, such that for every 10 common shares currently held, the holder will receive one postconsolidated common share.

There are currently 239,737,950 common shares issued and outstanding. Upon completion of the consolidation, there will be approximately 23,973,795 common shares issued and outstanding. The exact number of postconsolidated shares will vary depending on the treatment of fractional shares, which will occur when each shareholder's holdings in the company are consolidated. The company will not issue any fractional common shares as a result of the consolidation. Instead, all fractional shares resulting from the consolidation will be rounded down to the nearest whole number.

Private placement

The private placement will consist of up to 7,142,857 postconsolidated common shares at 70 cents per postconsolidated common share for total gross proceeds of up to $5-million. Finders' fees may be payable in respect of the private placement pursuant to the policies of the TSX Venture Exchange. Net proceeds of the private placement will be used for exploration and development of the company's mineral properties and for general working capital. All securities issued under the private placement will be subject to statutory hold periods expiring four months from the date of issue of the securities.

Sandstorm transaction

Sandstorm has agreed to subscribe for 2.65 million postconsolidated common shares in the private placement for total proceeds of $1,855,000 and to pay Pacton $300,000 in consideration for it granting Sandstorm the following:

  • Net smelter returns royalties of either 0.5 per cent or 1.0 per cent, depending on the individual properties, on all mineral claims owned by the company in the Red Lake district;
  • Net smelter returns royalties of either 0.5 per cent or 1.0 per cent, depending on the individual properties, on all mineral claims in which the company is currently earning an option in the Red Lake district;
  • 1.0-per-cent net smelter returns royalty all tenements the company owns in Australia.

The company has also assigned all of its current royalty buyback rights to Sandstorm, to the extent of the company's interest.

The transaction, private placement and consolidation are subject to the acceptance of the TSX Venture Exchange.

About Pacton Gold Corp.

Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high-grade conglomerate and orogenic gold properties located in the district-scale Pilbara gold rush in Western Australia and the Red Lake district, Ontario.

We seek Safe Harbor.

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