Platina makes $14m sale

Platina Resources will ramp-up its exploration efforts in Western Australia using the sale proceeds from its Skaergaard gold and palladium project in Greenland.

The company had been in talks for more than four months with Canada-listed Major Precious Metals Corp, which today completed its purchase of the Skaergaard project for $13.7 million.

Platina received $520,000 in cash and 55 million worth of MPMC shares, priced at $C0.23 cents each.

It has become a major shareholder of MPMC and has a right to a seat on the company’s board.

Platina managing director Corey Nolan said the funds raised from the sale would be used to advance the company’s Challa gold project in the Mid West.

“In addition to the cash funds, our major shares can be sold over me to fund our activities, reducing the need to raise new equity and avoiding the dilution of our share capital," he said.

“A large reconnaissance soil geochemistry program has just been completed at Challa to identify potential targets for deeper drilling.”

Mr Nolan said Platina was also reviewing merger and acquisition opportunities to build its gold presence.

Based in Mt Hawthorn, Platina also owns a 30 per cent stake in the Munni Munni gold-palladium project in the Pilbara.

Joint venture partner and project operator Artemis Resources holds the remaining 70 per cent.

Platina’s shares closed down 4 per cent to trade at 4.4 cents.