Canadians want more of our Pilbara gold and ASX juniors are winning
Canada’s Pacton Gold has been doing deals with ASX-listed companies to build its portfolio of conglomerate gold projects.
Minnow Clancy Exploration (ASX:CLY), which has a market cap of $6.7 million, is the latest Australian junior to shake hands with Pacton over its Hong Kong project, locking in a deal worth $C1.7 million ($1.8 million).
Conglomerate gold refers to nuggets hosted in rock containing rounded grey quartz pebbles and other minerals.
The Pilbara has become a hot spot for this style of gold, ever since Artemis Resources (ASX:ARV) and its Canadian partner Novo Resources uncovered what they called “watermelon seed nuggets” on their project south of Karratha last year.
The $C33.7 million Pacton has agreed to stump up $C200,000 in cash and issue $C1.5 million worth of shares to Clancy to earn a 70 per cent stake in the Hong Kong project.
Upon completion of the acquisition, Pacton and Clancy will enter into a joint venture, with Pacton acting as operator of the Hong Kong project.
Pacton has agreed to spend at least $C500,000 on the project within two years.
This will leave Clancy free carried until a decision to mine is made.
Clancy is chaired by the boss of Pilbara gold explorer Artemis, David Lenigas.
“This is an excellent deal for Clancy,” Mr Lenigas told investors this morning.
“Pacton are aggressively exploring the Pilbara for gold, having accumulated a very significant land package in the region, and Pacton will be an excellent partner for Clancy on Hong Kong.”
In June, Pacton struck a cash and scrip deal worth over $C10 million to buy Marindi Metals’ (ASX:MZN) Bellary Dome conglomerate gold project.
Canadian billionaire investor Eric Sprott is also extremely interested in the Pilbara conglomerate gold story and has stakes in several junior players.
Mr Sprott has holdings in Novo, De Grey Mining (ASX:DEG) and Kairos Minerals (ASX:KAI) either directly or through his gold miner Kirkland Lake Gold (ASX:KLA).
The deal between Clancy and Pacton will leave Clancy free to focus on its “Moroccan cobalt strategy”, Mr Lenigas said.
In July, the company revealed it had picked up more ground close to the “world famous” Bou Azzer cobalt mine in Morocco.
Bou Azzer is one of the world’s only operating primary cobalt mines and has been in operation since the 1930s.