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Platina Resources (ASX: PGM) receives initial AU$10.8M for scandium project sale, shares soar

August 30, 2023 02:25 PM AEST | By Team Kalkine Media
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Highlights

  • Platina Resources has closed the sale of its scandium project and received an initial cash payment of AU$10.8 million.
  • The development marks the company’s transition away from platinum and speciality metal projects to gold projects.
  • The company plans to undertake gold exploration across its Western Australian portfolio in the Ashburton Basin and Yilgarn Craton region.

Platina Resources Limited (ASX: PGM) has received an initial cash payment of AU$10.8 million for the sale of its Platina Scandium Project. The company sold its project to a 100% owned subsidiary of Rio Tinto Ltd. 

The company is also eligible to receive US$1 million warranty retention payment, re-payable by Rio Tinto after 30 months if there are no warranty breaches. Additionally, PGM may receive ~AU$9.2 million in future cash payments, subject to the granting of a mining lease and other project milestones by Rio Tinto. 

The development marks the company’s transition away from platinum and speciality metal projects to gold projects. 

Of the total proceeds, Platina Resources intends to use a proportion towards exploration at its extensive gold portfolio in Western Australia. The company has established plans and clearances for drilling three gold projects during 2023.

PGM shares soar ~22%

PGM shares traded at AU$0.028 at the time of writing on 30 August 2023, up more than 21.7% from the last close.


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