Written by 11:39 am Australia, Mining, Platina Resources, Top Stories

Platina Resources Strengthens Its Presence in Western Australia

Platina Resources Strengthens Its Presence in Western Australia
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Platina Resources Limited (ASX: PGM) (Platina Resources or “Company”) has announced signing a conditional binding term sheet to acquire Sangold Resources Pty Ltd (ASX: SLR) (Sangold Resources). Under the acquisition, Platina Resources will hold full ownership of the near-surface Brimstone Gold Project, Beete Project, and Binti Binti Gold Project.

Transaction Summary – Platina Resources

Platina Resources’ acquisition of Sangold Resources remains subject to due diligence and an exclusivity period and will be funded by an AUD 50,000 option payment, which expires on October 31, 2022. Platina Resources must meet and satisfy all conditions during this time or waiver them.

The considerations include:

  • Platina shares (AUD 2.5M) were issued at a 5% discount on the 10-day volume average price and AUD 150,000 in cash.
  • Of these AUD 2.5 M shares, AUD 0.1M shares will be subject to a 3-month escrow period and AUD 2.4M shares will be subject to 12 months.
  • Platina Resources will issue additional AUD 1M shares if a JORC-compliant inferred mineral resource above 100,000 ounces at 1.5g/t is found on any acquisition tenements.
  • Euroz Hartleys will receive AUD 75,000 advisory and introduction fees paid in 50% shares and 50% cash.

Also Read: PLATINA RESOURCES: DRIVING GOLD PORTFOLIO GROWTH WITH CAPITAL

Project Details – Platina Resources

All projects owned by Sangold Resources are located within gold-producing regions in Western Australia. Together, Sangold Resources holds 13 tenements covering an area of 276.9km2. All tenements will be held 100% owned by Platina Resources upon completion of the transaction.

Under the acquisition, Platina Resources will hold rights to three projects.

  • Brimstone Gold Project – Platina Resources

Brimstone Project location

The Brimstone Gold Project is located 40km northeast of Kalgoorlie and covers 70km2. The advanced, high-grade near-surface gold project has shown a mineralization strike length of 10km. In the project, the Garibaldi area is a highly mineralized mining lease. Prior drilling at the site has shown high-grade gold mineralization. The project has also seen historical drill hole intercepts at Lapage/Jammie Dodger and Eastern Workings. The project includes 1 granted exploration license and 2 pending exploration licenses.

  • Beete Gold Project – Platina Resources

The Beete Gold Project tenement area is located 50km south of Norseman and covers 139km2. The site sits within an emerging gold province with recent discoveries made in the nearby area by Aruma Resources and Meeka Gold. The discoveries of these ASX-listed companies show the significant potential of the region. The Beete Gold Project includes one exploration license (EL63/2193). The project has seen historical drilling between 1997 and 2002.

  • Binti Binti Gold Project – Platina Resources

The Binti Binti Gold Project is located 50Km northeast of Kalgoorlie and comprises 2 exploration licenses. The project covers an area of approximately 68.2km2. The project has had no historic drilling or exploration and is not interpreted as a potential greenstone prospect.

Platina Resources – Investor Outlook

Commenting on the update, Managing Director Corey Nolan said, “Brimstone is an advanced-stage project and holds immense appeal given its previous gold assay results. Historic work has never been followed up with a campaign. The Beete and Binti Binti projects are in proven mineralization provinces.”

Platina Resources is currently doing due diligence for the acquisition while simultaneously working to raise capital for the development of its portfolio. For more news on Platina Resources, visit the official website.

Also Read: Platina Resources Starts Drilling Program at the Xanadu Gold Project

 

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