Pacton is Pac-Man in the Pilbara
The market is well aware that Novo Resources has amassed the largest land position in the Pilbara Basin with about 12,000 square kilometers or 4,600 square miles. The market doesn’t yet realize that a tiny junior with a market cap of about $3.5 million USD in November has begun snapping up land in the Pilbara like Pac-Man on speed.
That junior, Pacton Gold (PAC-V) was selling for $.09 in November when they announced a change of leadership, appointing Alec Pismiris as President and CEO. He’s an Aussie with serious credentials in international gold exploration having been a founding shareholder and director of Papillon Resources sold to B2 Gold for $615 million in 2014 and Cardinal Resources who recently announced a 7.4 million ounce gold resource in Ghana.
It’s been interesting to me having followed the Pilbara story since 2009 that pretty much, with the exception of Mark Creasy, the Aussies have allowed the Canadians to sneak in and do the heavy lifting in the Pilbara. That just changed with an Aussie heading a Canadian junior being financed by Eric Sprott of Toronto.
Alec Pismiris hit the ground running since November and announced his first deal for Pacton in late February that gave Pacton a 500 square km foothold in the Pilbara. By the time of the deal the PAC shares had already advanced 285% since November to $.315.
In April Pismiris added another 80% interest in just over 600 square km with an option on Arrow Pilbara. A month later Pacton announced a private placement of $5.5 million led by Red Cloud and Sprott Capital Partners, both big investors in Novo Resources. And recently in May Pacton announced an LOI to pick up another 1,126 square km land position by buying Drummond East.
Pacton actually hasn’t missed a beat. In late March they made ready for the all important US market by becoming DTC eligible and acquiring a US symbol.
Until November, Novo Resources generated most of the heat and all of the light in the Pilbara gold rush. A few misunderstood news releases and a lack of solid assays results from the labs took the wind out of their sails. And since summer in WA does a wonderful imitation of what Hell is like and all work ceases for months, Pacton snuck in and started scarfing up interesting projects. Some caught on.
Actually a few investors noticed and snapped up shares moving the price from $.27 to $.77 in just the last four weeks.
The Pacton ground in the Pilbara are spread out from near the Novo ground at Karratha to surrounding the Beaton’s Creek gold deposit in the eastern Pilbara. While there seems to have been little news escaping from WA for the last six months actually one tiny junior after another is reporting gold nuggets in the conglomerates.
Prior to its rebirth as a Pilbara Sister Pacton had a focus on resources in Eastern Canada. With Australian leadership at the helm and a change in direction, I highly suspect the company will be vending the Canadian assets into a new vehicle and spinning it off to shareholders.
Pacton has about $5.5 million in the bank and another $9.6 million in warrants and are well in the money. They have been doing their deals pretty much for all shares. In relative terms they aren’t as expensive as Novo so hold a slight competitive advantage over Novo in all share deals. Obviously in a similar way to Novo, they are well cashed up and prepared for a lot of serious exploration.
I started sniffing around Pacton and actually had an order in to buy shares at $.27 thinking that after a run from $.095 to near $.30 they were bound to have a correction and I could snap up some cheap shares. So much for that theory. I got caught out standing by the runway at the airport when my ship came in. I wanted shares, I just wasn’t smart enough to buy them.
For now I cannot say if the price is cheap or expensive, it's had a hell of a run. But no doubt they have other prey in their sights and intend to become a major player in the Pilbara.
Pacton is an advertiser. I didn’t participate in the PP because there was no room but I would have. I did want to buy shares much lower but I missed my ride. I am still biased. They have an excellent presentation but the real story is reading between the lines.