Platina Resources (ASX:PGM) has received the final US$2 million payment from Rio Tinto (ASX:RIO) for the sale of its Owendale Scandium Project.
The payment completes the US$14 million ($19.7 million) transaction agreed in 2023, allowing Platina to focus funds on its Western Australian gold portfolio in the Laverton district.
Platina sold the Owendale project, now called the Burra Project, to a Rio Tinto subsidiary in August 2023 under a structured payment arrangement spanning multiple years.
Payments received by Platina comprised US$7 million on completion in August 2023, a US$4 million milestone payment in July 2024, a US$1 million warranty retention payment in December 2025, and the final US$2 million now received.
Managing Director Paul Polito says the final payment provides financial capacity to fund meaningful exploration while maintaining a strong balance sheet.
“We expect to put these proceeds to work in the ground,” Polito says.
“Our objective is to make a company-changing mineral discovery, and that means drilling targets that meet our technical and commercial criteria, testing geological ideas, and directing capital towards the opportunities that we believe have the greatest potential to create value for shareholders.”
Platina notes that the Owendale transaction provides substantial cash reserves to advance exploration activities without requiring immediate capital raising or dilutive funding arrangements.
The company says it continues assessing complementary acquisition and joint venture opportunities to add scale and discovery potential to its portfolio.
Platina Resources is focused on advancing early-stage metals projects through exploration, feasibility, and permitting towards development, holding a portfolio of gold projects in the Yilgarn region.
Write to Paula Fabe at Mining.com.au
Main image: Platina Resources
