PERTH (miningweekly.com) – ASX-listed Platina Resources has inked a conditional binding term sheet with Sangold Resources to acquire the Brimstone gold project, near Kalgoorlie.
Platina told shareholders on Wednesday that the company’s pivotal acquisition also includes full ownership of the nearby Beete, and Binti Binti gold projects.
MD Corey Nolan said the 277 km2 tenement package would add critical mass to the company’s Western Australian gold portfolio at a low acquisition cost in world-class gold districts.
“Brimstone is an advanced stage exploration project with immense appeal given the previously defined broad widths and high-grade gold assay results from numerous holes drilled across the tenement package. This historical work has never been followed up with a systematic exploration campaign, and therein lies the opportunity,” Nolan said.
“Brimstone includes six separate walk-up drill targets, including the Garibaldi prospect, which includes a historical drill intersection of 55 m at 2.07 g/t gold and the Jammie Dodger prospect, which includes a historical drill intersection of 22 m at 1.96 g/t gold, both of which remain open in all directions.
“The Beete and Binti Binti projects are both located in proven mineralised provinces, with the historical Beete gold mine situated inside the tenure under option.
“This new ground has the capacity to generate significant exploration results in the near term and will result in a solid pipeline of positive news flow over the next 12 to 24 months,” he said.
A program of works application has been submitted to the Department of Mines, Industry Regulation and Safety and Nolan said post completion of the transaction, the company’s top priority would be to immediately apply for further permitting at the Brimstone project, which had potential to progress quickly towards a mineral resource estimate.
Under the terms of the agreement, Platina would issue A$2.5-million of its own shares, at a 5% discount to the ten-day volume weighted average share price on the announcement of a transaction, and a further A$150 000 in cash.
The transaction is subject to an exclusivity and due diligence period, funded by a A$50 000 option, which will expire at the end of October, during which time all conditions must either be met or waived.