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Highlights
- Platina Resources has executed a binding agreement to divest its Xanadu Project in Western Australia to Kalamazoo Resources Limited.
- The transaction includes share issue, royalty, and milestone-based cash payments.
- The divestment allows Platina to focus on the newly acquired Mt McKenna Gold Project in the Eastern Goldfields.
Platina Resources Limited (ASX:PGM) has signed an agreement to divest its Xanadu Project in Western Australia to Kalamazoo Resources Limited (ASX:KZR). The move enables Platina Resources, an Australia-based company focused on advancing early-stage metals projects, to concentrate its exploration efforts on the recently acquired Mt McKenna Gold Project in the Eastern Goldfields.
Strategic Rationale
- Multiple drilling programs at Xanadu provided useful geological insights but not material outcomes.
- Ongoing investment was deemed unjustified as a standalone project.
- Kalamazoo will integrate Xanadu with its neighbouring Ashburton project for operational synergies.
- The divestment aligns with Platina’s strategy of directing shareholder capital toward higher-return assets.
Mt McKenna Gold Project Focus
The Mt McKenna Gold Project offers Platina a prospective landholding close to several major gold operations. This acquisition marks a strategic pivot toward projects with greater development potential.
Transaction Terms
Under the Sale and Purchase Agreement, Kalamazoo will:
- Issue 1,250,000 ordinary shares to Platina at AUD 0.12 per share, valued at AUD 150,000, subject to shareholder approval in November 2025.
- Pay Platina AUD 500,000 upon defining an Indicated JORC resource of at least 250,000oz at >0.5g/t Au within five years.
- Grant Platina a 1% Net Smelter Royalty on gold production from the Xanadu tenements.
Reflecting on the divestment, Platina’s Managing Director, Mr. Corey Nolan said, “Kalamazoo, with its established position in the Pilbara, is far better placed to unlock value from the project and will benefit from synergies with its nearby Ashburton operations. For Platina, the divestment is a clear strategic decision to concentrate on the Mt McKenna Gold Project in the Laverton region, which offers scale, prospectivity and proximity to major operations in the Eastern Goldfields, positioning it as our most compelling exploration opportunity. We believe this disciplined approach to capital allocation will maximise shareholder value as we advance an aggressive exploration program at Mt McKenna.”
Shares of PGM traded at AUD 0.026 at the time of writing on 22 September 2025.
