Platina Resources Extends MoU with Traxys to Advance Scandium Project in NSW

  • May 06, 2020 AEST
  • Team Kalkine
Platina Resources Extends MoU with Traxys to Advance Scandium Project in NSW

Australia-based mineral exploration company, Platina Resources Limited (ASX: PGM) has announced to have extended the Memorandum of Understanding (MoU) with global metals leader, Traxys Europe S.A by a further period of six months. The term has been extended to continue with assessment of scandium product and market development, as well as explore potential funding options for the Company’s Platina Scandium Project in New South Wales, Australia.

 

Source: PGM Reports

 

What does the MoU Extension Mean for PGM?

Traxys Europe is a wholly owned subsidiary of Traxys S.A.R.L., which is a global leader in sales, marketing, sourcing, and supply chain management of a variety of specialty and industrial metals with more than 20 offices around the world and ~$ 6 billion of average revenue recorded per annuum. The Company is also engaged in global commodity trading and logistics with operations across Europe, Africa, North America, South America, Far East and Asia including Greater China and India.

Traxys’ long track record of experience, expertise and success in serving and expansion of global markets for strategic materials (like scandium), have been extremely beneficial for Platina Resources to date.  

Under the MoU, the two parties would continue to work in collaboration to prepare binding documentation, a multi-staged cooperation agreement, and a marketing & distribution agreement that would also include a future working capital component.

Going forth, Traxys has also proposed to assist in developing and executing a strategic product, market and marketing development plan, and in sourcing funding in return for receiving long-term exclusive marketing and distribution rights to the scandium products produced from the Platina Scandium Project.

Most importantly, extension of the MOU would provide more time to both the companies to work on developing relationships, as the markets have largely been disrupted by the impacts of coronavirus pandemic (COVID-19). The MoU with Traxys Europe was executed in September 2019 whereby both companies agreed to work together. 

The MoU extension is part of the Company’s efforts towards tackling the market entry challenge. As the economic environment to secure and finalise scandium offtake agreements or joint venture partnerships remain quite challenging, PGM is also considering different initiatives such as examination of smaller scale development options like VAT leaching and testing of the potential to produce other products from the project.

Management Commentary and Market Opportunity

Platina Resources’ Managing Director, Corey Nolan stated that even though the aluminium alloy industry has only recently started to use scandium, it has been proved that scandium produces stronger, more heat tolerant and weldable aluminium products. Moreover, there is market opportunity to incorporate these products into transportation applications for electric vehicles that are expected to be widely commercialised and improving fuel efficiency. To make the most of this opportunity, Platina Resources is working with Traxys to leverage their global resources network.

 

 

Platina Resources is actively working towards securing an offtake marketing program for the project while targeting potential customers in various regions and countries including Europe, Asia, Australia and the United States. As one of the largest and highest-grade scandium deposits, globally, Platina Scandium Project seems to hold the potential to be the first scandium producer in Australia with cobalt and nickel credits.

Stock Performance: On 6 May 2020, the PGM stock closed trading at AUD 0.018, up 5.88%, with a market capitalisation of ~ AUD 5.55 million. PGM has generated positive returns of 21.43% in the last one month and 13.33% over the last five days.

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. All pictures are copyright to their respective owner(s). Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK