Canada-based Platinex has created an unlisted subsidiary called Green Canada Corporation (GCC), both of which have entered into a binding letter of intent with TSX-V-listed International Prospect Ventures (IPV) to acquire a portfolio of exploration-stage uranium projects in Canada.
Platinex has also assigned its option agreement on the Muskrat Dam critical minerals project with Springer Mineral Resources Corporation, in Ontario, to GCC.
Platinex shareholders will participate as direct shareholders of GCC, providing them with exposure to uranium and other critical minerals as Canada begins to experience increased global interest and investment in mineral exploration driven by the green energy transition.
GCC is being strategically positioned with an advantageous portfolio of critical mineral discoveries.
The initial GCC board of directors includes Olivier Crottaz, a portfolio manager based in Lausanne, Switzerland; Jean-David Moore, an experienced junior miner investor based in Quebec; and Greg Ferron, CEO of Platinex.
The projects to be acquired include the Beartooth Island uranium project, in Saskatchewan; the Matoush-Otish Mountain and Mistassini projects, in Quebec; three large claim blocks in Elliot Lake, Ontario, which include claims at the Eco Ridge uranium and rare earth elements project; and the Cypress uranium and copper project, in Saskatchewan.
In return, IPV will receive 7.5-million common shares of Platinex valued at $400 000 and 2.6-million common shares of GCC, as well as net smelter royalties on the uranium portfolio.
In particular, Platinex says the Muskrat Dam project has considerable base and rare earth potential, with the new subsidiary structure affording GCC better access to capital at this early stage.
Collectively, the uranium portfolio covers 650 km2 of prospective ground adjacent to proven uranium and rare earth projects.
Meanwhile, GCC has closed a private placement of $500 000 to a group of high-net-worth, institutional and corporate investors.
The funds will be used for mineral exploration and administrative expenses.
Following the placement and uranium acquisitions, Platinex owns about 60% of the issued common shares of GCC.
Ferron comments that Platinex has an established history exploring for critical minerals in Canada, and with the uranium spot market signalling the future undersupply of uranium, the capital markets will be supporting new exploration ventures.
The GCC portfolio complements Platinex’s Canadian critical mineral portfolio and is in line with its corporate strategy to be nimble and seize opportunities for accretive transactions that benefit shareholders.
Platinex continues to advance its flagship W2 copper/nickel/platinum group metals project, as well as the South Timmins gold joint venture project, in Timmins.