Platina Resources Limited (ASX:PGM) received an ASX speeding ticket following a rise in the price of its shares from 4 cents to 5.2 cents on Friday.
The ASX also noted the significant increase in the volume of Platina’s securities traded from Thursday July 9 to Friday July 10.
Responding to the ASX price and volume query, the company said that there was no information that had not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.
However, Platina noted that the following factors could be contributing to the increased trading volumes and price:
- On June 1 2020, Platina announced the sale of its wholly owned Skaergaard project in Greenland to Major Precious Metals Corp (CNSX:SIZE) for C$500,000 cash and issuing Platina 55 million Major Precious shares at settlement. Since announcing the transaction, the price of Major Precious shares has increased to C$0.71 per share, valuing Platina’s shares in Major Precious at about C$39 million, a significant premium to the current market capitalisation of Platina. Platina noted the transaction remains incomplete and subject to a number of conditions precedent, which is progressing;
- On June 30 2020, PGM’s joint venture partner in the Munni Munni (Platina 30%) platinum group metals and gold project, Artemis Resources Limited (ASX:ARV), announced it had completed a 12-hole drilling program and samples had been sent to the laboratory for assay analysis which was expected to take 3 to 4 weeks; and
- Platina’s portfolio of assets provides investors with a significant exposure to gold and palladium. Gold and palladium prices have increased significantly in the last twelve months, both increasing 28% to US$1,798 per ounce and US$1,970 per ounce, respectively.
