Platina Resources Ltd (ASX:PGM) has been assisted by the Greenland Government in the search for an investment partner to progress the Skaergaard Project, which hosts one of the world’s largest palladium resources.
The Greenland Government Mineral Licence and Safety Authority has renewed the Skaergaard exploration licence (EL2007/01) for another three years until December 31, 2022.
In the wake of the COVID-19 pandemic, the government has also approved a temporary adjustment and removed 2020 tenement expenditure obligations on all mining projects in Greenland.
Early discussions strengthened
Managing director Corey Nolan said the government’s backing would help strengthen the company’s early-stage discussions with several potential investment parties who had been drawn by palladium’s strong price performance this year.
“Not only have we kept a foothold on a world-scale palladium resource, we’ve made considerable savings and any expenses incurred during 2020 will be carried as credits that can be utilised in the next three years.
“Since a scoping study completed in December 2019 highlighted the project’s development potential, the palladium price climbed to a record high of $US2,875 per ounce in February to surpass the price of gold and become one of most valuable metals on earth.
“Despite prices easing to just below $US2,000 per ounce in early May due to the impacts of coronavirus, current prices represent a 38% increase from this time last year.”
Nolan said he expected palladium prices and demand to hold firm for the rest of the year and positively impact the project’s economics and business case.
He credited the price growth of palladium, a white metal used in catalytic converters, to stricter environmental standards around car emissions that was draining a global supply already struggling to meet demand.