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Australia-based Platina Resources Limited (ASX:PGM) is a metals and mining sector player exploring for and developing precious and specialty metal deposits internationally while also continuously identifying for additional prospective projects.
The company has a special focus on platinum group metals and the strategic metal scandium. Platina has amassed a well-balanced portfolio of carefully chosen projects at various stages and through expertise acquired over years, the company is advancing them through exploration, feasibility, permitting and into development.
Platina Resources Portfolio -
Share Purchase Plan
On 29 August 2019, PGM signed a joint venture (JV) agreement to earn up to a 70% interest in the Blue Moon Zinc Project in the United States.
To assist with the costs of the Companyâs participation in the Blue Moon Project, the Company is offering Shareholders the opportunity to participate in the SPP.
Platina Resources announced an underwritten Shareholder Share Purchase Plan (SPP) for raising around AUD 1.25 million before costs along with a proposed Top-up Placement that would target to raise up to AUD 1.25 million.
The timeline comprising key dates for the SPP is given below.
SPP Summary âThe shareholders on the companyâs register, as of the Record Date, would have the opportunity to subscribe for New Shares in one of the following amounts at the Subscription Price, which will be determined after the close of the SPP.
- AUD 2,500.00
- AUD 5,000.00
- AUD 10,000.00
- AUD 15,000.00
- AUD 20,000
- AUD 25,000.00
- AUD 30,000.00
The Subscription Price will be equal to around 80% of the five-day VWAP of the companyâs shares traded on the Australian Securities Exchange (ASX) over the last 5 days immediately prior to the issue date of the New Shares, rounded up to the nearest 0.1 cent.
The Board of Platina Resources has structured the SPP is such a wat so as to encourage the loyal, smaller shareholders to apply and increase their shareholding in the company without having to incur any brokerage or transaction costs.
The shareholders eligible to participate in the offer would be those having a registered address in Australia or New Zealand. Platina Resources also added that presently, it intends to cap the SPP at AUD 1,250,000 and if the company records over subscriptions, it would reserve the right to accept applications beyond the amount of AUD 1.25 million. In any case, according to the ASX Listing Rules, the maximum number of New Shares that can be issued is 30% of the companyâs existing issued Shares (being 79,237,870).
Patersons Securities Limited is the underwriter to the SPP (up to AUD 1,250,000) and Patersons would be paid an underwriting fee of 6% of the underwritten amount along with a management fee of AUD 20,000 (exclusive of GST).
No shareholder approval is required for the company to any shortfall shares to Patersons or to any of the sub-underwriters if appointed, as these would be within Platina Resourcesâ existing issue capacity as per the ASX Listing Rule 7.1 and 7.1A.
The proposed Top-Up Placement to professional and sophisticated investors, immediately following the close of the SPP would be led by Patersons Securities. The Top-Up, if it is executed, would have the same issue price as the SPP.
Use of Funds
Platina Resources indicated that the funds raised from the offer would be directed towards the following activities â
The application period will close at 5.00 PM (Sydney time) on Monday, 30 September 2019.
Further details on the companyâs current and planned activities for all of its projects are set out in detail and may be READ here.
Stock Performance
Platina Resourcesâ market cap is around AUD 7.66 million with approximately 264.13 million shares outstanding. On 27 September 2019, the PGM stock price settled the dayâs trading at AUD 0.029 with approximately 236,595 shares traded.
Disclaimer
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