PERTH (miningweekly.com) – Junior Platina Resources has struck a joint venture (JV) agreement to earn a 70% interest and become the operator of the Blue Moon zinc project, in the US.

The company will spend C$3.25-million over the next 18 months to earn an initial 50% interest in Blue Moon, and a further A$3.75-million over a further 18 month period, to gain an additional 20%.

Once the 70% earn-in has been completed, expenditure at the Blue Moon project will be based on a contribute/dilute basis, subject to Platina funding the first C$5-millionfor both parties as a fully-refundable financing loan.

Furthermore, Platina will also acquire a 5% equity interest in project owner, TSX-V listed Blue Moon Zinc Corporation, by subscribing for C$300 000 worth of shares.

Platina also has a six month option to acquire an additional 5% interest in the company at market prices. If the 10% threshold is reached, Platina will be allowed to appoint a member to the Blue Moon board.

“This transaction will create significant share value uplift potential for Platina shareholders as the project advances towards development,” said Platina MD Corey Nolan.

“The first step involves a significant drilling programme to expand the size of the deposit. Drill core will be used for metallurgical testing and data for completion of a prefeasibility study.

“While Platina is very actively focused on generating shareholder value for its core assets, the company believes exposure to another exciting investment opportunity at an early-stage will generate significant news flow as it advances through exploration, feasibility, permitting and into development.”

Platina on Thursday also launched a share purchase plan (SPP) to raise A$1.25-million and a proposed share placement to raise another A$1.25-million.

The SPP will give shareholders the opportunity to subscribe for between A$500 and A$15 000 worth of new shares in the company, with the issue price to be determined at the date of issue.

The SPP shares will be priced at a 20% discount to the volume weighted average share price during the five trading days immediately prior to the issue date.

Platina will also undertake a top-up placement, with shares to be issued at the same price as the SPP.

The funds raised will be used to complete the Blue Moon transaction, as well as to fund ongoing scandium market development and permitting activities for the Platina scandium project, and to fund exploration cost at the Skaergaard gold and platinum group metal project, in Greenland.