- Platina Resources is selling its 30% interest in the Munni Munni Project to Alien Metals in a cash and share deal.
- The deal will provide Platina with a solid cash boost to fund its gold exploration activities in Western Australia.
- The Company expects an increase in its Alien shareholding over the next twelve months.
Australia-based Platina Resources Limited (ASX:PGM) has decided to sell its 30% stake in the Munni Munni Project to Alien Metals Ltd (Alien, AIM:UFO). The development will strengthen the Company’s financial footing, giving it a leg up in pursuing its gold exploration activities in the tier 1 mining jurisdiction of Western Australia.
Platina sells non-operated interest in Munni Munni
Platina holds a 30% interest in the project, while its joint venture partner, Artemis Resources Limited (ASX:ARV) has the remaining 70% stake. Munni Munni is one of Australia’s most significant platinum group metal occurrences. Moreover, it has potential for conglomerate-hosted gold.
Munni Munni Project Location (Source: PGM investor presentation)
The Company has signed a conditional Binding Heads of Agreement with Alien Metals to sell its 30% stake for AU$0.25 million in cash and AU$1.98 million worth of Alien shares. The shares will be escrowed in three equal tranches for 3, 6 and 12 months.
Platina retains a price top-up right in case Artemis Resources divests its 70% interest and secures better terms than the Company’s sale to Alien.
The transaction remains subject to final due diligence and regulatory approvals in Australia and London.
Sale to provide funds for WA gold exploration
Commenting on the development, Corey Nolan, Platina Managing Director, said: “This transaction will allow Platina shareholders to share in Munni Munni’s prospective value increase through its Alien shareholding while providing Platina with an injection of new funding to pursue its gold exploration activities in Western Australia.”
Platina’s gold exploration tenements in Western Australia (Image source: PGM annual report)
He added that Alien’s planned investments in drilling and technical studies across its project portfolio are likely to amp up the value of its Alien shareholding over the next one year.
A coup d'œil at Alien’s profile
Alien is a London Stock Exchange Alternative Investment Market-listed company engaged in exploration and mining project development.
Its prime focus is on precious and base metal projects, such as the Elizabeth Hill Silver Project, Hamersley Iron Ore Project, and the surrounding Munni Munni North exploration permit. All these projects are located within the Western Australia’s Pilbara region. The firm is also working on two silver projects as well as a copper gold project in Mexico.
The acquisition of the 30% interest in the Munni Munni Project will allow consolidation of the Elizabeth Hill and Munni Munni districts. The two districts are prospective for precious and platinum group metals.
Presently, Alien is in a strong financial position to move forward with its various Western Australian projects. The firm recently completed a £4 million (AUD 7.4 million) capital raising.
Stock information: PGM shares were trading at AU$0.064 midday on 24 November 2021. The Company has a market capitalisation of AU$28.66 million.