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Summary
- PGM has boosted its working capital position with investment from Palisades Goldcorp and another major shareholder.
- The non-brokered private placement will raise AUD 894,400 (before costs) at 4.0 cents per share.
- Funds raised will be used to advance PGM's portfolio that includes projects like Challa Gold Project and Munni Munni PGM Project.
- Platina is reviewing several opportunities to expand portfolio of gold projects.
Western Australia-headquartered Platina Resources Limited (ASX: PGM) has received commitments from a non-brokered private placement of 22.36 million ordinary shares to raise AUD 894,400 (before costs). The placement boosts the Company’s working capital position, enabling to continue delivering its business objectives.
Placement Details
The ordinary shares will be issued under PGM's existing placement capacity. The placement will close on or around 15 August 2020.
- Commitments received from Palisades Goldcorp for 19.97 million shares
- 2.39 million shares to another major shareholder
- Additionally, 22.36 million options with a strike price of 10 cents with an expiring period of three years from the date of issue will be offered to placement participants; however, it is subject to shareholder approval. The approval is expected in the shareholder meeting scheduled in September 2020.
Platina has agreed to pay a 6 per cent selling fee on the investment by Palisades Goldcorp and issue 4 million options on the same conditions as the placement options. It is also subject to shareholder approval.
The placement strengthens Platina's financial position and offers the flexibility to continue delivering its business objectives.
About Palisades Goldcorp
Canada-based Palisades is a new resource-centric merchant bank with its management team boasting a proven track record of generating money and supported by the industry's top-most financiers.
Palisades’ management is of the opinion that the junior resources sector is on the cusp of a significant bull market move, with equities in the sector valued at generational lows.
The bank is injecting funds in various undervalued businesses and assets, targeted to generate superior returns.
Platina Managing Director Corey Nolan Comments
Proceeds from the placement will be directed towards advancing the asset portfolio of Platina, which includes projects like Challa Gold Project where the tenements were recently granted and Munni Munni Platinum Group Metals Project in Western Australia.
As PGM is also planning to expand its gold project portfolio, the Company is assessing multiple new possibilities in world-class gold districts in Australia.
Also Read: Platina Seeking to Build Portfolio in WA Goldfields, Submits Application for Mt Narryer Project
Its investors get significant exposure to gold and palladium with prices moving up significantly over the last twelve months. For gold, prices increased by 37 per cent to USD 1,958 per ounce and palladium prices soared by 46 per cent to USD 2,280 per ounce.
The Company is focused on creating value from its other core assets comprising the Skaergaard Project in Greenland and the Platina Scandium Project in New South Wales. PGM is right now concluding the sale of Skaergaard to Canada's Major Precious Metals Corp (CSE: SIZE).
PGM's Project Portfolio
- Challa Gold Project (100 per cent interest)
The project is located in-between the prolific Mt Magnet and Sandstone gold districts in Western Australia, 500km north-east of Perth. The Challa gold tenements have now been granted, with the transfer of licences requiring the Mines Minister approval. The Company is finalising plans to begin field activities at the project.
Related: Platina Resources Adds Challa Gold Project to Precious & Specialty Metals Project Portfolio
- Platina Scandium Project
The project has the potential to become Australia's first scandium producer with cobalt, platinum and nickel credits. Located in central New South Wales, the project is one of the most significant and highest-grade scandium deposits in the world.
- Skaergaard Palladium and Gold Project (100 per cent interest)
Located in Greenland, the project is one of the world's most significant undeveloped gold deposits and is one of the most substantial palladium resources outside of South Africa and Russia.
Related: Platina Resources Unlocks Value in Skaergaard Project with Multi-Million Deal; Stock Spikes 12%
- Munni Munni Project (30 per cent interest)
The project is one of the most significant platinum group metal (PGM) resources, situated at the Pilbara region of Western Australia.
Related: Platina Resources Begins Drilling at Munni Munni Project; Stock Zooms 13%
- Blue Moon Project (to earn 70 per cent interest)
The project is located in California, US, and has a NI43-101 resource, which is open at depth and along strike and has favourable metallurgy.
Stock Performance - On 29 July 2020, PGM closed the day's trade at AUD 0.053, with a market cap of AUD 20.05 million. The stock has delivered an excellent return of 260 per cent in the last three months.
