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Mineral Exploration company Platina Resources Limited (ASX:PGM) is based in Australia and engaged in progressing its portfolio of precious and specialty metal projects, from exploration, feasibility through to permitting, development and finally production. The company has a special interest in platinum group metals (PGM) and scandium (a strategic metal). Over the years, Platina Resources has created a well-balanced portfolio of projects at various stages that are carefully chosen to balance various risks.
Platina Resources Project Portfolio-
Blue Moon Project Update - On 2 October 2019, Platina Resources announced that the planned and fully permitted initial 10,000 metre phase one drilling program for the Blue Moon zinc-copper-gold Project would commence once the transaction is completed. Currently, the company is negotiating proposals from drilling contractors and would provide further updates as activities progress.
Transaction Overview- It is the latest addition to the companyâs portfolio. Platina Resources announced on 29 August 2019 to have signed a JV agreement for earning up to 70% interest in the Blue Moon Project and also take charge of operations. The transformational transaction not only gave Platina Resources an opportunity to apply its core expertise in taking projects through their entire life cycle but also enhanced the companyâs exposure to international assets.
According to the agreement, Platina Resources would be spending ~ CAD 3.25 million over the course of 18 months to first gain 50% stake and thereafter another CAD 3.75 million over the next 18 months to earn a further 20%. Subsequently, the expenditure would be contribute/dilute-based subject to Platina providing fully refundable financing loan of CAD 5 million for both parties.
In addition to the project, Platina Resources would be gaining a 5% equity ownership in the project owner, TSX-V listed Blue Moon Zinc Corporation by subscribing for CAD 300,000 worth of shares. The agreement also offers a 6-month option for Platina Resources to acquire an additional 5% stake in Blue Moon Zinc Corporation (BMZ) at market prices. Other condition for completion is receiving the approval from BMZ shareholderâs, in a meeting scheduled to occur on 25 October 2019.
Drilling Objectives - According to the company, there is a major potential for the existing mineral resource to be expanded within the project area while there is also scope of targeting mineralisation in other areas that have been defined within the land package based on geophysics and soil geochemistry.
The company is planning to conduct the drilling program in a number of phases with the following objectives in place:
- Expanding the size of the existing mineral resource which is open at depth and along strike;
- Conversion of the inferred mineral resources to measured and indicated through infill drilling;
- Targeting other potential mineralization within the tenement package;
- Collecting geotechnical and hydrological data for incorporation into the feasibility studies; and
- Collection of drill core for metallurgical test work.
More on the Blue Moon Project may be READ here in detail.
Fund raising âIn addition, Platina Resources has also recently closed a Share Purchase Plan (SPP) on 30 September 2019, raising ~ AUD 1.25 million before costs that would be directed towards closing the Blue Moon Project transaction and financing related activities, progressing the ongoing scandium market development and permitting activities for the Platina Scandium Project, exploration costs for the Skaergaard gold and PGM project and for general capital requirements. More on the SPP may be READ here.
A proposed Top-up Placement to raise ~AUD 1.25 million was also announced and may be taken up subsequent to the SPP.
Stock Performance
Platina Resources has a market capitalisation of around AUD 6.87 million with ~ 264.13 million shares outstanding. On 3 October 2019, the PGM stock closed the dayâs trade at AUD 0.025.
Disclaimer
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