Published On: August 22nd, 2022
Driving Gold Portfolio Growth with Capital Raising
Platina Resources Limited (ASX: PGM) (Platina or Company) announced that the Company has received commitments to raise AUD 2.225M in share placements. It is important to note that Euroz Hartleys Limited (ASX: EZL), a Western Australia-based financial services company, was the Lead Manager for the placement.
Where will the placement funds be used?
(A) Furthering projects in Western Australia
Platina Resources will be using the placement funds to further Western Australia’s four gold projects.
- Xanadu Gold Project: A multi-million-ounce gold endowment located in the Ashburton Basin, Western Australia.
- Challa Gold Project: Located between Mt Magnet and Sandstone gold districts, and lies in an area with more than 50 gold occurrences.
- Mt Narryer Gold Project: Located in a well-known gold and base-metal-producing province. Platina is actively pursuing this project which has not yet been granted.
- Jubilee Gold Project: Located within the Murchison province, this project has not yet been granted.
The placement funds will be used to further these Western Australia projects, and will be applied for the following:
- A reverse circulation drilling program at the Xanadu Gold Project, is scheduled to commence in late August 2022.
- A Phase-II air core drilling program at the Challa Gold Project. The drilling will commence once the assay results for Phase-I drilling are completed and reviewed.
(B) Furthering projects in New South Wales
Platina’s scandium project in central New South Wales is one of the world’s largest high-grade scandium deposits. Platina has already conducted a definitive feasibility study and the placement funds will be applied to further the project. Platina will continue with a master alloy development program and permit for a mining license at the Platina Recources Scandium Project.
(C) Furthering Sangold Resources acquisition
As announced on August 10, 2022, Platina Resources seeks to expand the Company and has signed a conditional binding term sheet to acquire Sangold Pty Ltd. Platina Resources’ acquisition is subject to due diligence and an exclusivity period expiring on October 31, 2022. The placement funds will also be used for due diligence and acquisition costs of Sangold Resources Pty Ltd. Sangold Resources holds 13 tenements all of which will be 100% owned by Platina upon completion of the transaction.
Other than these three, the placement funds will also be used as general working capital.
Share Placement Details
Platina will be issuing 8 million broker shares to Euroz Hartley or their nominees for AUD 0.045 with a 24-month term. The broker shares are subject to shareholder approval in the next meeting (late September 2022).
Other Platina shares will be issued for AUD 0.025 each. In total, Platina will be issued up to 89 million ordinary shares, which falls under the Company’s existing placement capacity under ASX Listing Rule 7.1 and 7.1a.
The Platina share placement is scheduled to close on or around August 22, 2022.
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