Platina Resources has sold its Platina Scandium Project to a wholly-owned subsidiary of Rio Tinto for $12.3 million, $1.5 million of which has been withheld as a warranty retention payment, to be paid by Rio Tinto if there are no warranty breaches after 30 months.
Platina may also receive future cash payments totalling $9.2 million subject to Rio Tinto achieving project milestones including granting of a Mining Lease.
Platina Managing Director, Corey Nolan, said that the sale of the scandium project finalised the company’s transition away from platinum and speciality metal projects to gold projects 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 2023,” Mr Nolan said.
“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.”
