Platina Resources Ltd (ASX:PGM) is closer to finalising the A$27 million sale of its 100%-owned Skaergaard Project in eastern Greenland to Canadian Securities Exchange-listed Major Precious Metals Corp (CNSX:SIZE).
The Greenland government has approved the transfer of Skaergaard Exploration Licences (EL2007/01 and EL2012/25) to Major.
The Vancouver-based company is now preparing a Canadian NI 43-101 resource estimate and plans a number of other value-adding work programs.
As part of the deal, Platina will receive C$500,000 cash (A$520,00) and 55 million shares of Major valued at $26.8 million, based on the last traded price of Major at C$0.47 per share.
Platina managing director Corey Nolan said the transaction represented a win-win outcome.
He said: “Completion of the transaction will allow Platina shareholders to share in Skaergaard’s prospective value increase while providing Platina with an injection of new funds to pursue other opportunities.
“Major is already working hard to realise value from the project and has planned a site visit this month and is working towards the preparation of a Canadian NI 43-101 resource estimate and a number of other value-adding work programs.”
The sale will see Platina become a major shareholder in Major, which will, in turn, become a palladium-focused exploration company looking to expand its portfolio of palladium assets.
Closing of the deal is subject to final due diligence and regulatory approvals in Canada.
The Skaergaard Project is on the east coast of Greenland and hosts one of the world’s largest undeveloped gold deposits and one of the largest palladium resources outside South Africa and Russia.