Platina Resources Ltd (ASX:PGM) is close to completing the sale of its 100%-owned Skaergaard Project in eastern Greenland to Vancouver-based Major Precious Metals Corp (CNSX:SIZE) for total consideration of around A$22.1 million (C$20.9 million).
The final condition precedent is the approval of the transaction by the Canadian Securities Exchange (CSE) which involves the completion of a NI 43-101 property report and shareholders’ approval.
A site visit by an independent consultant, which is crucial to complete the Canadian NI 43-101 property report, has been completed.
The Canadian firm intends to secure shareholders’ approval through a written consent process with its major shareholders.
Platina managing director Corey Nolan said the strategy was expected to expedite completion of the process.
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.
“On closing, Platina will receive A$520,000 (C$500,000) and 55 million major shares, which based on the last traded price of C$0.38 per share represents a further $A22.1 million (C$20.9 million) in value for Platina shareholders.”
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.
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.