Platina Resources’ AU$904,000 Placement to Boost Capital Position and Enable Advancement of Projects

  • Jun 16, 2020 AEST
  • Team Kalkine
Platina Resources’ AU$904,000 Placement to Boost Capital Position and Enable Advancement of Projects

Summary

  • Platina Resources to raise AU$904,000 from existing and new shareholders; funds to be utilised for advancing the Company’s diversified project portfolio, particularly Challa Gold Project and Munni Munni Project.
  • Multi-million deal reaching finalisation for the AU$8.3 million sale of Skaergaard Project to Canada-based Eastern Zinc Corporation.

Australia-based Platina Resources Limited (ASX: PGM), advancing its portfolio of precious, speciality and base metal projects through different stages of exploration, feasibility, permitting and towards development, has announced to have received commitments for a non-brokered private placement to existing and new shareholders to raise AU$904,000 (before costs) at AU$0.021 per share.

The Placement would strengthen Platina Resources’ working capital position to continue delivering on its project development activties.

Around 43,050,477 ordinary shares would be issued under the Company’s existing placement capacity under Listing Rule 7.1A (31,929,283 shares) and Listing Rule 7.1 (11,121,194 shares). The Placement is scheduled to close on or around 19 June 2020 while the Company has agreed to pay a 6% selling fee only on applications from new shareholders.

Platina Resources’ Managing Director Corey Nolan commented on this recent development, stating that the funds raised from the placement would be directed towards advancement of the Company’s portfolio of assets including the newly acquired Challa Gold Project and Munni Munni Platinum Group Metals Project in Western Australia and also for general working capital.

Besides, the Company is planning to expand its portfolio of gold projects and is reviewing a number of new opportunities in Australia.

  • Challa Gold Project (100% interest on completion of acquisition) – Recently, Platina Resources executed a conditional agreement to acquire 100% interest in the Challa Gold Project, which comprises two high-quality exploration licence applications being E58/552 and E58/553, covering 293km2. Located in-between Western Australia’s prolific Mt Magnet and Sandstone gold districts, the project is approximately 500km north-east of Perth.

The Company has also outlined an exploration strategy at three primary targets, and a low-cost Rotary Air Blast (RAB) drilling program for testing these targets would begin after the exploration licence applications are granted.

Read More: Platina Resources Enters Agreement to Acquire Challa Gold Project in Prolific WA Province

  • Munni Munni Platinum Group Metals Project (30% interest) – Situated in the Pilbara region of Western Australia, the Munni Munni project is considered to be one of the most significant Platinum Group Metal occurrences in Australia. The Company holds the project, which has potential for conglomerate hosted gold, under a JV with gold and copper focused resources company, Artemis Resources Limited (ASX: ARV).

Furthermore, Platina Resources also remains committed to creating value from its other assets including the Platina Scandium Project in New South Wales and the Skaergaard Project in Greenland.

  • Platina Scandium Project (100% interest) – As a large and premium-grade scandium deposit, the project has the potential to become Australia’s first scandium producer with cobalt, platinum and nickel credits. Recently, Platina Resources extended its agreement with Traxys Europe S.A by a further period of six months, to work in collaboration for assessing scandium product and market development, as well as exploring potential funding options for the project.

Read More: Platina Resources Extends MoU with Traxys to Advance Scandium Project in NSW

  • Skaergaard Project (100%-interest) – It is known as one of the largest undeveloped gold deposits in the world as well as one of the largest palladium resources outside of South Africa and Russia. The Company is currently finalising the AU$8.3 million sale of the project to Canada-based Eastern Zinc Corporation (CSE: EZNC).

Read More: Platina Resources Signs Multi-Million Deal with Eastern Zinc to Sell Skaergaard Project

Stock Information:  The PGM stock settled the day’s trade at AU$0.024 on 16 June 2020, with a market capitalisation of AU$7.83 million. The last one-month and three-month return of the stock was noted at 14.29% and 50%, respectively.

 


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