Goldspot Discoveries (TSXV: SPOT) announced Friday a signed service agreement with Pacton Gold (CVE: PAC) to use Goldspot's A.I. and machine learning tools to evaluate and identify possible mineral and drill targets on Pacton's Red Lake, Ontario property. "We believe Red Lake's ground is ripe for a technological revolution" - Goldspot CEO
Goldspot has been granted a 0.5% smelter royalty on the property and the option to purchase an additional 0.5% net smelter return royalty on all metals produced from the Red Lake property for C$1 million, as well as 0.5% net smelter return royalty on all metals produced from all the current claims comprising Pacton's Australia assets in the Pilbara Craton for C$1 million.
"The Pacton Gold property in the historic Red Lake gold camp in North western Ontario excites us. It is the ideal district to use artificial intelligence and machine learning to find new discoveries," said Denis Laviolette, GoldSpot's president and CEO in a media statement. "After initial screening and utilizing artificial intelligence to analyze various layers of data related to Pacton Gold's property, we have made our largest speculative bet to date."
"We believe Red Lake's ground is ripe for a technological revolution, and this deal gives us royalty exposure to 16,630 hectares of prospective land," said Laviolette.
Market reaction to the partnership was positive: Goldspot's stock was up 4%, and Pacton's stock was up 8% on the CVE Friday afternoon.