Platina Resources Limited (ASX: PGM) (“Platina” or “the Company”) has announced the divestment of its interest in the Xanadu Project in Western Australia to Kalamazoo Resources Limited (ASX: KZR). This decision enables the Company to sharpen its exploration focus on the recently acquired Mt McKenna Gold Project in the Eastern Goldfields.
Platina Managing Director Mr. Corey Nolan, explained the rationale: “Kalamazoo, with its established position in the Pilbara, is far better placed to unlock value from the project and will benefit from synergies with its nearby Ashburton operations.”
Figure 1: Laverton Region map highlighting major gold mines and the Mount McKenna Gold Project (blue polygon) within greenstone–granite geology.
Details of the Transaction
Under the sale and purchase agreement, Kalamazoo will acquire the Xanadu Project through a mix of share issuance, performance-based payments, and royalties:
- 1,250,000 ordinary shares in Kalamazoo (valued at $0.12 per share, totalling $150,000). Half will be escrowed for six months and the remainder for 12 months, subject to shareholder approval at Kalamazoo’s AGM in November 2025.
- Performance Payment: $500,000 payable to Platina if Kalamazoo defines an Indicated JORC resource of at least 250,000oz at >0.5g/t Au across Xanadu within five years.
- Royalty: A 1% Net Smelter Royalty on gold extracted from the Xanadu tenements.
This structured deal positions Platina to benefit from Kalamazoo’s success, while preserving its capital for high-priority exploration.
Platina’s Exploration Focus
The divestment aligns with Platina’s disciplined strategy of allocating shareholder capital toward projects with the strongest growth potential. The Company has now pivoted towards Mt McKenna, a highly prospective landholding near La1verton, proximal to several large-scale operations in the Eastern Goldfields.
Mr. Nolan added: “For Platina, the divestment is a clear strategic decision to concentrate on the Mt McKenna Gold Project in the Laverton region, which offers scale, prospectivity and proximity to major operations in the Eastern Goldfields, positioning it as our most compelling exploration opportunity. We believe this disciplined approach to capital allocation will maximise shareholder value as we advance an aggressive exploration program at Mt McKenna.”
Kalamazoo’s Strategic Expansion
For Kalamazoo, the acquisition marks a significant expansion of its Ashburton Gold Project, growing its total project area to 380.2 km². The Xanadu package includes nine highly prospective tenements covering 142.4 km² contiguous to Ashburton.
Notable historical drill results from Xanadu include:
- 11m @ 5.32 g/t Au from 17m (XRC016)
- 13m @ 4.08 g/t Au from 75m (XRC057)
- 8m @ 3.97 g/t Au from 71m (XRC084)
Kalamazoo’s CEO, Luke Mortimer, commented: “By acquiring the Xanadu Gold Project and expanding surrounding exploration tenure, Kalamazoo is advancing its growth strategy to substantially expand Ashburton’s resource base and potential life-of-mine. The Scoping Study, expected in Q4 2025, is set to showcase compelling economics for the proposed Stage One development and reinforce Kalamazoo’s status as a significantly undervalued gold company.”
Figure 2: Geology map of the Ashburton Gold Project displaying the positions of historical mines, exploration prospects, and estimated gold resources, along with the newly acquired Xanadu Gold Project tenements highlighted in green.
Market Context
The divestment comes at a time of sustained strength in the gold market, with prices trading near record highs. As of 22 September 2025 (1:32 pm AEST), gold was valued at USD $3,691.11/oz (AUD $5,598.53/oz), reflecting a 40.65% year-to-date gain in USD terms. Over the past month alone, gold has advanced 9.63%, underscoring strong investor demand for safe-haven assets.
On a per-unit basis, gold is trading at USD $118.67/g and USD $118,671.77/kg, highlighting the favourable environment for exploration and project development.
This bullish commodity backdrop enhances the attractiveness of both Platina and Kalamazoo’s strategic moves. With Kalamazoo integrating Xanadu into its Ashburton operations and Platina accelerating its Mt McKenna exploration program, both Companies are positioned to capture value in a high-price gold environment.
Investor Outlook
Platina Resources’ repositioning represents a decisive step towards unlocking greater value. The Company is set to benefit not only from the upside at Mt McKenna but also from its retained royalty interest and equity exposure to Kalamazoo. As of September 22nd, 2025, the stock of Platina Resources was trading at $0.025.
Market performance reflects investor confidence in Platina’s strategy:
- 2025 YTD: +47.06%
- 1 Year: +13.64%
- vs ASX 200 (1yr): +6.30%
With a market capitalisation of $16.1 million, Platina has reaffirmed its commitment to targeting high-value opportunities in the Eastern Goldfields. The Company’s focus on Mt McKenna, combined with the residual interest in Xanadu, provides a balanced platform for growth in a favourable gold price environment.
