- Platina Resources (PGM) is acquiring Sangold Resources and three of its projects in WA
- The company will pay Sangold $2.5 million in shares and $150,000 cash to add the Beete, Binti Binti and Brimstone projects to its portfolio
- Platina says the 277-square kilometre tenement package will add “critical mass” to its portfolio at a low acquisition cost
- While Platina completes due diligence and finalises the transaction, it is undertaking a capital raise to fund ongoing development work but is yet to disclose any details
- PGM is currently in a trading halt and shares last traded at 3.6 cents on August 9
Platina Resources (PGM) entered a trading halt regarding an acquisition and associated capital raising.
The company signed a binding term sheet to acquire Sangold Resources who owns the Beete and Binti Binti projects in Western Australia.
The Beete project can be found 50 kilometres south of Norseman and covers 139 square kilometres. The historical Beete mine lies within the southern end of the tenement and may be a possible extension of the Norseman greenstone belt.
Binti Binti comprises two exploration licences 50 kilometres northeast of Kalgoorlie and 30 kilometres west of Northern Star’s Carosue Dam gold mine..
In addition to these, the agreement gives Platina Resources an exclusive option to acquire the Brimstone project which lies northeast of Kalgoorlie, WA.
The Brimstone Project covers 70 square kilometres and hosts six ‘walk-up’ drill targets, including the Garibaldi prospect, which historically returned 55 metres at 2.07 grams per tonne (g/t) gold, and the Jammie Dodger prospect, which includes a historical intersection of 22 metres at 1.96 g/t gold.
PGM Managing Director Corey Nolan said the 277-square kilometre tenement package will add “critical mass” to Platina’s WA gold portfolio at a low acquisition cost.
“Brimstone is an advanced stage exploration project with immense appeal given the previously defined broad widths and high-grade gold assay results from numerous holes drilled across the tenement package,” Mr Nolan said.
“This historical work has never been followed up with a systematic exploration campaign, and therein lies the opportunity.”
As part of the deal, Platina will pay Sangold $2.5 million worth of shares issued at a five-day volume weighted average price and $150,000 cash. Of the consideration shares issued, $2.4 million will be subject to a 12-month escrow period and $100,000 for three months.
A further $1 million shares will be issued if the company delivers a JORC-compliant inferred mineral resource above 100,000 ounces at 1.5 g/t on any of the acquired projects.
While Platina completes due diligence and finalises the transaction with Sangold, it is undertaking a capital raise to fund ongoing development activities. The company said its initial priority is to immediately apply for further permitting at the Brimstone project.
Platina is yet to release information about the capital raise and may do so once it comes out of a trading halt by Friday, August 12.
PGM shares last traded at 3.6 cents on August 9.