Platina raises funds for Owendale project

Perth-based explorer Platina Resources has tapped investors for $7 million to fund ongoing work at its Owendale scandium-cobalt-nickel-platinum project in NSW.

Platina raised the funds through the placement of 52.8 million shares at 13.5 cents each, representing an 11.7 per cent discount to its five-day volume-weighted average price.

The raising was managed by Hartleys.

Proceeds from the raising will be used to fund completion of a pre-feasibility study on Owendale during the second quarter of the year, and a definitive feasibility study by the end of the year.

Funds will also be used for drilling work.

“Following completion of drilling, we expect to update the cobalt resource associated with the project,” Platina managing director Robert Mosig said.

“High grade cobalt mineralisation remains open in several areas and we are excited to further develop and define this resource over the coming months.

“The demand received in this raising is a reflection of the outstanding potential of the Owendale project to evolve into a world-class scandium, cobalt, nickel and platinum development.”

Platina shares closed 3 per cent higher to 17 cents each.