Platina Resources Completes Blue Moon Transaction Ahead of October 2019 Schedule

Diversified Mining Services Player, Perenti Global (Ausdrill) Under Focus

Australia-based Platina Resources Limited (ASX: PGM) is a metals and mining company engaged in exploration and development of its global well-balanced portfolio of early-stage precious and specialty metal projects from feasibility to permitting, development and through to production. The company has a special bent towards platinum group metals (PGM) and scandium, a metal of strategic importance.

Platina Resources’ Project Portfolio

Blue Moon Project Transaction Finalised

On 15 October 2019, Platina Resources informed to have settled the Blue Moon transaction, which is now unconditional and has been completed ahead of the planned 25 October 2019 schedule.

The company is certain of the excellent potential that this deposit has for further expansion of the current mineral resource and Platina Resources also plans to target mineralisation in other areas that have been defined within the tenement package through geophysics and soil geochemistry.

New Flagship Asset – Blue Moon Zinc-Copper-Gold Project, United States– Platina Resources announced on 29 August 2019, that a joint venture (JV) agreement had been executed to earn up to 70% interest in the Blue Moon Project located in California while also gaining the operatorship of the same.

As per the terms of the transformational transaction, an expenditure of CAD 3.25 million over 18 months to earn 50% stake would be borne by Platina Resources followed by an additional CAD 3.75 million over the next 18 months for earning the remaining 20% stake. Thereafter, once Platina provides CAD 5 million fully-refundable financing loan for both parties, the project expenditure would be undertaken on a contribute/dilute basis.

Pursuant to the JV agreement, upon subscription of shares for ~CAD 300,000 in the former project owner Blue Moon Zinc Corporation (TSX-V listed), Platina would acquire 5% equity interest in the same. Additionally, the company may also acquire a further 5% interest in Blue Moon Zinc Corporation based on the six-month option for the same at market prices.

The Blue Moon Project is an excellent addition to the company’s portfolio as it is characterised by a Significant Valuation Upside; Large, well-defined Mineral Resource with attractive grades; favourable location and an appropriate infrastructure already in place. Besides, the project offers the stakeholders exposure to a lucrative commodity suite, including zinc, copper, gold and silver. Also, on the London Metals Exchange (LME), the price of zinc had hit a 10-year peak of USD 3,600/tonne in 2018, demonstrating compelling supply/demand fundamentals.

Currently, the company is advancing the planned 10,000 metre infill drilling at the Blue Moon deposit for resource definition as well as exploration drilling to expand the mineral resource estimate and negotiations with drilling contractors are underway.

Read herePlatina Resources Adds Blue Moon Zinc Project (US) To Global Portfolio of Metal Projects.

Key Objectives & Way Ahead

Stock Performance

On 15 October 2019, the stock of Platina Resources settled the day’s trading at a market price of AUD 0.021 with ~ 2.05 million shares traded. PGM has a market capitalisation of ~AUD 7.12 million.


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