Glacier Lake Resources has agreed to purchase the Kalahari Platinum Project (KalPlats) in the Magisterial District of Vryburg, South Africa, from African Thunder Platinum.

The firm will purchase a controlling stake in Stella Platinum and Greenstone Platinum, which jointly control the prospecting rights for the Kalahari project.

According to the deal, Glacier Lake Resources will pay a cash amount that is equivalent to 50% of the proceeds derived from the sale of debt or equity securities to a maximum of $11,923,000 (C$15,000,000).

Furthermore, Glacier will issue a number of units as is ‘equivalent to 19 and nine-tenths of the issued and outstanding common share capital of the company’ at deal completion.

Each consideration unit will include one Glacier common share and one common share purchase warrants, which is exercisable at $0.26 a share for 36 months.

The deal is subject to completing at least C$15m in financing, as well as due diligence review of the transaction and KalPlats.

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By GlobalData

It also awaits regulatory approval and clearance of the South African Minister of Mineral Resources and Energy.

The palladium-rich project is situated nearly 350km west of Johannesburg in the North West Province of South Africa.

According to estimates, the KalPlats project is estimated to hold measured and indicated resources totalling 69.91 million tonnes (Mt) grading at 1.48g/t 3E and inferred mineral resources of 56.68Mt grading 1.62g/t 3E at the known deposits.

This historical mineral estimate on platinum, palladium and gold mineralisation was published in 2014 by Coffey Mining Consultants.

Glacier, however, is not treating the estimate as current.