SYDNEY, AUSTRALIA: Platina Resources Limited (ASX: PGM) has signed a conditional Binding Heads of Agreement to sell its 30 per cent
interest in the Munni Munni Project to London listed, Alien Metals (LON:UFO) for AUD 0.25 million in cash and AUD 1.98 million worth of Alien shares.
Alien Metals is an exploration and mining project developer focussed on precious and base metal projects including the Hamersley Iron Ore Project, Elizabeth Hill Silver Project and the surrounding Munni Munni North exploration permit, all located within the Pilbara region of Western Australia, as well as two silver projects and a copper gold project in Mexico.
Alien’s acquisition of the 30% interest in Munni Munni will create a platform to consolidate the Elizabeth Hill and Munni Munni districts which is prospective for precious and platinum group metals.
Alien recently completed a £4 million (AUD 7.4 million) capital raising and is very well funded to advance its various Western Australian projects.
Platina Managing Director Corey Nolan said the value of its minority and non-operated interest in Munni Munni project was not reflected in its market capitalisation and the sale provided a way of unlocking this value.
“This transaction will allow Platina shareholders to share in Munni Munni’s prospective value increase through its Alien Metals shareholding while providing Platina Resources with an injection of new funding to pursue its gold exploration activities in Western Australia,” he said.
Mr Nolan said Alien’s planned investments in drilling and technical studies across its portfolio of projects would hopefully enhance the value of its Alien shareholding over the next twelve months.
The transaction will be subject to final due diligence, and regulatory approvals in Australia and London. The shares will be escrowed in three equal tranches for 3, 6 and 12 months.