Platinex has concluded the purchase of a 100% stake in the W2 Copper-Nickel-Platinum Group Element (PGE) Project located near the Ring of Fire, northwestern Ontario, Canada, from Springer Mineral Resources.
According to the deal, Platinex issued 3,625,000 of its shares to Springer and paid $19,957 (C$25,000) in cash.
Platinex also granted a net smelter returns royalty of up to 2% on the mining claims, including the W2 Project to Springer.
The firm is due to pay a further $19,957 (C$25,000) in cash within 90 days from the closing of the transaction.
Springer will receive an additional payment of up to C$300,000 from Platinex. Of this, up to $212,500 can be paid through Platinex shares issuance.
The W2 Project comprises more than 5km of strike length of known Cu-Ni-PGE mineralisation within a 9,134ha land package near the Ring of Fire.
Historical exploration was conducted by operators, including Aurora Platinum during the 2000s, and Inco, at the W2 project.
The project includes 70% of the layered mafic-ultramafic Lansdowne House Igneous Complex (LHIC).
This is said to be ‘highly prospective’ for copper-nickel and reef-type PGE deposits.
Platinex interim CEO Greg Ferron said: “The acquisition of W2 was completed on attractive terms to enhance shareholder value. The W2 Project has tremendous exploration potential and will experience revaluation both through additional exploration and discoveries and from improving access and infrastructure in the region.
“The acquisition also complements Platinex’s net smelter royalty portfolio in which the company holds numerous royalties located in Ontario mining camps.”