Platina Finalising Plans for Field Activities at Challa Project, Skaergaard Deal Progressing Towards Completion   

  • Jul 22, 2020 AEST
  • Team Kalkine
Platina Finalising Plans for Field Activities at Challa Project, Skaergaard Deal Progressing Towards Completion   

Summary

  • Platina Resources has secured Challa gold tenements, with transfer of licences requiring Mines Minister approval. The Company is finalising plans to begin field activities at the project.
  • The cash and share deal to sell Skaergaard Project is progressing well, and Platina will become a significant shareholder in Major Precious Metals, post deal completion.
  • Considering both Artemis Resources Ltd and Munni Munni Pty Ltd have breached the Heads of Agreement, PGM has started Supreme Court proceedings against them.

Australia-based Platina Resources Limited (ASX: PGM) released a corporate update on 20 July 2020, highlighting activities concerning Challa Gold Project in Western Australia, Skaergaard palladium and gold project in Greenland and Munni Munni Project in Western Australia.

PGM is engaged in creating shareholder value by advancing its project portfolio through various stages, starting from exploration, feasibility and permitting towards development. The Company has a portfolio of projects, with focus on speciality, precious, and base metals.

Challa Gold Project: PGM Finalising Plans to Begin Field Activities

In June 2020, Platina entered a conditional agreement to acquire a 100 per cent interest in the Challa Gold Project, including two high-quality exploration licence applications (E58/552 and E58/553) covering 293km2. The Challa gold tenements have now been granted; however, the transfer of licences from vendors to PGM requires Mines Minister approval, which is expected to occur shortly. The vendors are Corporate & Resource Consultants Pty Ltd and Bruce Legendre.

The project location is in-between the prolific Mt Magnet and Sandstone gold districts in Western Australia, 500km north-east of Perth.

Platina is finalising plans to begin field activities, covering a low-cost Rotary Air Blast (RAB) drilling program to examine primary targets.

To know more about Platina Resources’ exposure to the world-class gold province via this project, please read Platina Resources Enters Agreement to Acquire Challa Gold Project in Prolific WA Province

Skaergaard Project: Platina All Set to Become Significant Shareholder of Major

PGM signed a conditionally binding sale and purchase deal with Major Precious Metals Corp. (previously known as Eastern Zinc Corp.) for the wholly owned Skaergaard palladium and gold project in Greenland in early June 2020.

As per the deal, Major will acquire a 100 per cent interest in Platina's exploration licences, EL2007/01 and EL2012/25. It will be completed with the payment of C$0.5 million in cash to Platina and issue of 55 million common shares (based on a Major share price of 35 cents, equates to AUD 21 million in value) in the capital of Major to PGM.

The transaction is advancing towards completion but remains subject to finalisation of various conditions precedent. It includes a Greenland Minerals Act requirement, under which the Mines Minister needs to approve the transfer subject to specific technical and financial conditions. The application process was completed during the previous week that included consultation and ministerial approval process.

With the deal completion, Platina will become a significant shareholder of Major and gain the right to appoint a board member.

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

Munni Munni Project: Proceedings Begin in the Supreme Court 

Platina entered a Heads of Agreement with both Artemis Resources Ltd and Munni Munni Pty Ltd. on 4 August 2015. The agreement varied from time to time in relation to the Munni Munni project in Western Australia.

PGM considers that each of these firms have breached the agreement, owing to contractual settlements of Artemis with Almeera Ventures Limited and Empire Metals Limited. PGM seeks various relief that includes an order that the Company is entitled to exercise its right to purchase back Artemis’ and Munni Munni’s respective interests in the Munni Munni project. 

Furthermore, Platina has begun proceedings in the Supreme Court of Western Australia against Artemis and Munni Munni Pty Ltd. It is to be noted that the Company holds a 30 per cent stake in Munni Munni project, in the Pilbara region of Western Australia, believed to be one of the most significant Platinum Group Metal occurrences in the country.

Also read: Platina Resources Begins Drilling at Munni Munni Project; Stock Zooms 13%

Stock Performance - On 22 July 2020 (AEST 12:06 PM), PGM was trading at AUD 0.055, moving upward by 10%, with its stock delivering a return of 85.19 per cent and 233.33 per cent in the last one month and three months, respectively. 

 


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