Platina Resources (ASX:PGM) has received US$8 million ($12.3 million) in cash from the sale of the Platina Scandium Project to a wholly owned subsidiary of mining giant Rio Tinto (ASX:RIO).
Under the deal, less a US$1 million warranty retention payment which is repayable by Rio Tinto after 30 months if there are no warranty breaches, Platina may also receive future cash payments totalling US$6 million subject to Rio Tinto achieving project milestones including granting of a Mining Lease.
Addressing the divestment, Platina Managing Director Corey Nolan says the sale of the scandium project finalised the company’s transition away from platinum and speciality metal projects to gold where it could apply considerable expertise and experience.
“A proportion of the funds will be directed towards exploration at the company’s extensive gold portfolio in the Yilgarn Craton and Ashburton Basin in Western Australia. Plans and clearances have been established for drilling three gold projects in calendar 2023.
Additionally, we are well funded to continue exploring other more mature project opportunities that can be expanded through drilling and feasibility studies. The proceeds from the sale enables Platina to maintain its tight capital structure, providing an opportunity for significant share price upside leverage upon discovery success.”
Platina is an Australian-based company focused on advancing gold projects through exploration, feasibility, and permitting towards development.
The company controls a 100% interest in a portfolio of gold projects in the Yilgarn Craton and Ashburton Basin in Western Australia.
Write to Adam Orlando at Mining.com.au
Platina Resources
