Heavyweight gold investor Sprott Capital Partners remains an active participant in the developing Pilbara gold rush, closing out a C$5.5 million private placement on behalf of Pacton Gold (TSX-V:PAC), a Canadian-listed prospector on the hunt in Western Australia.
As part of the capital injection, Pacton issued approximately 24 million shares at C$0.23 per share, as well as offering share warrants, which effectively act as option agreements with a three year term convertible at C$0.35.
Sprott founder, billionaire businessman and serial gold investor Eric Sprott has tipped his hat into the ring, collecting a consideration worth C$2 million in Pacton Gold. It is the first investment by Mr Sprott into Pacton Gold.
All of the securities sold as part of the offer will be subject to a four month holding period and will also be subject to final acceptance from the TSX Venture Exchange.
Proceeds from the raising will be used to fund further exploration work at its tenements, with the company investigating 492km2 of exploration licenses in the Pilbara.
Pacton is hot on the heels of fellow Canadian explorer Novo Resources (TSX-V:NVO), pegging land holdings which border Novo’s tenements.
The ‘watermelon seed’ style gold nuggets returned from the Pilbara are fuelling global investment in the region. The style of nuggets found are indicative of a large, diverse deposit analogous to South Africa’s globally significant Witwatersrand formation.
Pacton is in a strong position to rapidly accelerate its prospecting activities post-raising, with a deepened relationship with Sprott Capital Partners.
Sprott Capital Partners was appointed an advisor to Pacton Gold in March this year, with the investment behemoth committing to assist with marketing arrangements as well as providing strategic capital services.
