Pacific American adding gold to its renewables, coal portfolio
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Pacific American Holdings (ASX:PAK) has gone through a number of transformations, adding renewable energy assets to its previous focus on metallurgical coal.
Now, the shiny allure of high gold prices has proven to be irresistible with the company securing an option to acquire up to 60 per cent in advanced exploration licences about 150km north of Kalgoorlie from Salazar Gold.
The licences include the 113 sq km Porphyry North project just 15km north of the Porphyry gold mine.
Since the 1970s, several mining companies have explored for nickel and gold within and around the Porphyry North project, which hosts the Rainbow Dam, the Nugget Patch Anticline and the Red Gate Shear gold targets.
Pacific can earn its stake through a staged farm-in with total expenditure of up to $2m.
“Salazar has undertaken detailed preliminary exploration with a number of targets that are drill-ready,” chairman Geoff Hill said.
“This investment in gold, coupled with the Company’s most recent venture GP Hydro, supports PAK’s strategy to diversify into high value assets that have significant returns for shareholders.”
Meanwhile, Metal Bank (ASX:MBK) has settled the sale of its Triumph gold project tenements to Roar Resources, adding $400,000 to the $2.11m it recently raised through a capital raising.
The sale includes a 1 per cent royalty on gross revenue from the sale of gold mined from the tenements as well as three staged payments totalling $6m on classification of resource milestones.
Proceeds from the sale and capital raising will be used to advance exploration at the company’s 8 Mile and Eidsvold gold projects.
Metal Bank has completed a IP geophysical survey at 8 Mile and is working on an IP survey at Eidsvold. These surveys are aimed at refining drill targets prior to the upcoming drilling campaign which is due to start before the end of this month.
Trigg Mining (ASX:TMG) has entered into an option agreement to sell a non-core exploration tenement south of Laverton, Western Australia, to private company Tigers Paw Prospecting.
The company has received a $20,000 payment from Tigers Paw for the six month option with tenement obligations to a minimum of $50,000 to be met by Tigers Paw.
This option can be extended by six months through the payment of a further $20,000 during which time Tigers Paw will meet the minimum expenditure requirements of the tenement.
Should the option be exercised, Tigers Paw will be required to make a $100,000 payment in cash or shares (if the company has been listed on the ASX by that time).
Payments totalling $700,000 will also be required on hitting certain resource milestones along with a 1.5 per cent net smelter royalty.