Published On: November 4th, 2022
Platina Resources (ASX: PGM) (Platina Resources or “Company”) announces the acquisition of Sangold Resources Pty Ltd and three of its projects in WA, namely Beete, Binti Binti, and Brimstone projects. The Company will pay Sangold AUD 2.5 million in shares and AUD 150,000 cash for such an acquisition. Managing Director Corey Nolan of Platina Resources has remarked that the 277km2 tenement package will “add critical mass to the company’s gold portfolio” at a” low acquisition cost in world-class gold districts.”
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A Noteworthy Acquisition
Platina Resources Limited (ASX: PGM) announces the complete acquisition of Sangold Resources Pty Ltd after receiving exemplary support from the Extraordinary General Meeting. The Company signed an agreement to acquire Sangold’s Beete and Binti Binti projects.
The Brimstone Project has tremendous gold mining potential, considering the formerly defined broad widths and high-grade gold from the several holes drilled across the tenement package. An Induced Polarisation survey shall also be organised in December to determine drill targets effectively.
Brimstone Gold Project covers 70 km2. The tenement package comprises five prospecting licences, one mining licence, one miscellaneous licence, and three exploration licences (1 granted and two pending)
Brimstone Project comprises six walk-up drill targets, including two prospects that remain open in all directions. The first one is the Garibaldi prospect, with a historic hit of 55m at 2.07 g/t Au, and the Jammie Dodger prospect, with a landmark, hit of 22m at 1.96g/t Au.
The Beete Project has the Historical Beete Gold Mine located inside the acquired tenure. Currently, strategies are in the making for ﬁeld work in Beete, including soil sampling and auger drilling.
Furthermore, a Programs of Works application to the Department of Mines, Industry Regulation and Safety (DMIRS) has been lodged to commence exploration activities. The Heritage Survey clearances are also secured for M27/501 at Garibaldi. After completion of the transaction, Company would aim to secure cultural heritage clearances at the other tenements to allow the drilling of existing deﬁned targets.
An Insight into The Transactions
Platina Resources has signed a Sale and Purchase Agreement to close the transaction. The acquisition calls for a consideration encompassing AUD150,000 cash and 80.6 million Platina shares worth AUD2.5 million. Out of the AUD2.5 million shares, the AUD2.4 million shall be subject to a 12-month escrow period, whereas AUD100,000 for three months.
Apart from that, the consideration also comprises Performance Shares. The number of such shares will be derived by dividing AUD1,000,000 by the Issue Price of Performance Shares upon achieving a JORC-compliant Inferred Mineral Resource above 100,000 ounces at 1.5g/t. The issue price of such shares gets calculated at a 5% discount to the VWAP for the Company shares. The calculation happens for ten trading days preceding the announcement date to the achievement of those mentioned above.
About ASX: PGM
Platina Resources, a gold exploration Company based in Mt Hawthorn, WA, aims to return shareholder value by drilling its projects looking for mineral deposits. Xanadu in the Ashburton Basin and Challa in the Yilgarn Craton is its marked geographies, wherein it targets an exploration of 1 million-ounce gold deposits. It has a holistic portfolio that includes Challa Gold Project, Xanadu Gold Project, Jubilee Project, Mt Narryer Project, Brimstone Project, Beete Project, Binti Binti Project, and Platina Scandium Project. The Company controls a 100% interest in these projects.
- Platina Resources (ASX: PGM) has issued 541,035,172shares and has a market cap of AUD 10,550,186, with a book value of AUD 0.044 per share.
- The last Platina Resources Share Price is AUD 0.02. The Company, run by Managing Director Corey Nolan, has fully acquired the Brimstone Gold Project, including full ownership of the Beete and Binti Binti gold projects.
- While Xanadu Gold Project has an impeccable exploration potential with economic-grade gold drill intercepts.
In addition, the Company has invested in Blue Moon Zinc Corporation (TSXV: MOON), Major Precious Metals (CSE: SIZE), and Nelson Resources Limited (ASX: NES), further optimising its revenue potential.
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