Platina Enters Joint Venture for Blue Moon Zinc Project

- August 29th, 2019

Platina Resources has entered a joint venture agreement to earn both operatorship and a majority interest in the Blue Moon zinc project.

Platina Resources (ASX:PGM,OTC Pink:PTNUF) has entered a joint venture (JV) agreement to earn both operatorship and a majority interest in the Blue Moon zinc project in the US.

Calling the agreement a “transformational transaction,” the company has the opportunity to earn up to 70 percent of Blue Moon. Platina will earn the first 50 percent by spending C$3.25 million over 18 months, followed by an extra C$3.75 million over another 18 months to earn an additional 20 percent.

The deal will also see Platina acquire a 5 percent equity interest in Blue Moon’s owner, Blue Moon Zinc (BMZ)(TSXV:MOON,OTC Pink:BMOOF), by subscribing to shares for C$300,000. The company can acquire an additional 5 percent interest in BMZ at market prices through a six month option.

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“This transaction will create significant share value-uplift potential for Platina shareholders as the project advances towards development,” Corey Nolan, Platina’s managing director, said in a statement.

“While Platina is very actively focused on generating shareholder value for its core assets, the company believes exposure to another exciting investment opportunity at an early-stage will generate signifcant news flow as it advances through exploration, feasibility, permitting and into development.”

Nolan went on to lay out the company’s first plans for Blue Moon, which include a drilling program to expand the mineral resource and exploring the tenement package for new mineralization. The company is planning a drill program for 2019’s December quarter.

Located in California’s Mariposa County, Blue Moon’s project area previously housed a mine with operations dating back to the 1940s. The project consists of three land tenure components that span 445 acres, including two deeded and patented mineral claims owned by BMZ subsidiary Keystone Mines.

A mineral resource update released by Blue Moon last year lays out an inferred resource of 7.8 million tonnes grading 8.07 percent zinc equivalent. This includes an estimated 771 million pounds of zinc, 300,000 ounces of gold and 10 million ounces of silver.

Alongside the news of the JV, Platina announced a shareholder share purchase plan in order to raise $1.25 million, followed by a proposed placement to raise up to an additional $1.25 million. The funds are docketed to go towards advancing Platina’s project portfolio, along with completing the Blue Moon deal and other company costs.

As of Wednesday (August 28), zinc was trading at US$2,260 per tonne on the London Metal Exchange.

In Australia, Platina’s share price plunged 16.28 percent on Thursday (August 29) following the announcements, ending the day of trading at AU$0.036.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

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