PERTH (miningweekly.com) – ASX-listed Platina Resources on Monday told shareholders that it would ramp up its hunt for gold in Western Australia after completing the A$13.7-million divestment of its Skaergaard gold and palladium project, in Greenland, to Canadian-listed Major Precious Metals Corp.
The junior company has received C$0.5-million in cash and 55-million Major shares, resulting in Platina becoming a major shareholder in Major with the right to a seat on the company’s board.
“The deal allows us to ramp up exploration activities at our Challa gold project which lies in-between the prolific Mt Magnet and Sandstone gold districts in Western Australia.
“In addition to the cash funds, our Major shares can be sold over time to fund our activities, reducing the need to raise new equity and avoiding the dilution of our share capital,” said Platina MD Corey Nolan.
Platina’s shareholding in Major will be subject to a 24-month release pooling arrangement, during which time they could not be transferred, assigned or traded.
Nolan said on Monday that Platina is also reviewing a number of merger and acquisition opportunities to build on gold presence.
Meanwhile, Nolan pointed out that Platina shareholders would continue to retain value in the Skaergaard project through the company’s shareholding in Major.
“Major are already working hard to create value from the project including plans to produce a mineral resource estimate and preliminary economic assessment in accordance with Canadian standards, and a drilling programme for summer 2021.
“The anticipated outcomes of the studies are expected to be positively impacted by the recent strength and positive price outlook for palladium and gold.”