Platina Resources (ASX:PGM) has signed a binding farm-out and joint venture (JV) agreement with nickel sulphide exploration company Chalice Mining (ASX:CHN) for the Mt Narryer Gold Project in Western Australia.
Under the agreement, $2.4 billion market capitalisation company Chalice will earn a 51% interest in the project by spending $600,000 over 2 years including a minimum spend of $150,000 in the first year.
Chalice can then area an additional 24% interest by spending a further $1.8 million over the following 2 years. Platina would then continue to be free-cost carried to completion of a Prefeasibility Study (PFS).
Following the completion of a PFS, funding will revert to a standard contribute or dilute JV. If Chalice earns a 90% interest, Platina’s 10% interest will then be converted to a 1% net smelter royalty (NSR).
Commenting on the agreement, Platina Resources Managing Director Corey Nolan says: “The new joint venture offered a tremendous opportunity to leverage the nickel, copper, and PGE (platinum group element) metal expertise that Chalice used to discover Julimar.
Chalice has a proven, low-cost model for discovering major mineral deposits using reconnaissance, geochemical sampling, and geophysical surveys backed by a bank of geological knowledge from its Ni-Cu-PGE discovery at Julimar.
“Mt Narryer covers more than 200km-square, and Chalice brings both the financial and technical capability to explore the Mt Narryer project rapidly and effectively in this region”
Mt Narryer covers more than 200km-square, and Chalice brings both the financial and technical capability to explore the Mt Narryer project rapidly and effectively in this region.”
Nolan also notes the new Mt Narryer JV will allow Platina to channel its financial resources towards other key projects in Western Australia, including Brimstone, Xanadu, and Beete.
Platina reports Mt Narryer covers aeromagnetic highs splaying off the major fault between the Palaeozoic Lyons Group sediments, and the Archaean granites and gneisses.
The company interprets the aeromagnetic highs may indicate the presence of ‘large’ ultramafic units within these gneisses that could host similar mineralisation to that found at Chalice’s Julimar Nickel-Copper-PGE Project located 480km south of Mt Narryer.
Platina Resources is an Australian exploration company focused on advancing early stage metals projects towards development. The company’s portfolio includes the Xanadu, Mt Narryer, Challa, Jubilee, Binti Binti, Brimstone, and Beete projects in Western Australia, as well as the Platina Scandium Project in New South Wales.
Images: Platina Resources Limited & iStock
