Join our daily newsletter At The Bell to receive exclusive market insights
- Platina Resources (PGM) has received roughly $2.64 million after selling six million shares in Canadian miner Major Precious Metals
- The company believed that selling shares in Major to be a better option than selling its own shares
- Platina will use the $2.64 million in funds to build its gold presence and portfolio in Western Australia
- After the sale, the company will still hold 49 million shares in Major, worth approximately $23 million combined
- Platina Resources is up 3.7 per cent and trading at 5.6 cents per share
Platina Resources (PGM) has received roughly $2.64 million, after selling six million shares in Canadian miner Major Precious Metals.
Major Precious Metals is a junior mining and exploration company that is based in Vancouver and listed on the Canadian Securities Exchange.
The company’s portfolio of exploration properties is diversified and contains a number of promising precious and base metal deposits.
Platina Resources’ Managing Director, Corey Nolan, said that selling some of the company’s shares in Major was the best option to secure new funding for growth.
“Raising capital through an offering of Platina shares, when we have a negative enterprise value and they are trading at substantial discount to our investment portfolio valuation, wasn’t deemed to be the optimal capital management strategy,” he said.
“The sale process also addresses concerns about the liquidity of our investments and capacity to realise value,” he added.
After the transaction to sell the six million shares, Platina Resources still holds about 49 million shares in Major Precious Metals. Combined, these shares in the Canadian miner are worth approximately A$23 million.
Platina Resources will use the $2.64 million in funds from the sale of Major shares to build its gold presence in Western Australia. According to Corey Nolan, the company is already moving full steam ahead to build a gold portfolio in the region, which has been a hotspot for gold mining since the late 1800s.
In addition to being a world-class geological location for gold mining, Western Australia also has excellent support infrastructure and one of the world’s best permitting and development approval regimes.
Platina Resources is up 3.7 per cent, trading at 5.6 cents per share at 3:44 pm AEST.
