Platina Resources has announced plans to acquire a 100% interest in the Mt McKenna Gold Project in the Laverton gold district of Western Australia (WA).
The project is located approximately 13km east-north-east of Laverton, with the tenements situated within the Laverton Downs and Mt Weld Pastoral Leases.
The acquisition deal for Mt McKenna involves Platina purchasing all shares in Jasper Exploration, the current owner of the project.
The agreement includes a cash payment of A$320,000 ($208,705), which covers the repayment of exploration data purchase and other transaction-related costs.
Additionally, Platina will issue 20 million ordinary shares and grant a 1.5% net smelter royalty (NSR) on the project, with an option for Platina to buy back half of the NSR at market value.
Furthermore, an extra A$25,000 in cash and 1.75 million shares will be allocated for finders and corporate advisory services related to the acquisition.
These shares will be issued under Platina's existing placement capacity in accordance with Listing Rule 7.1.
The completion of the transaction is expected within the next five business days.
Platina managing director Corey Nolan said: “Mt McKenna presents a near drill ready project opportunity with significant exploration upside, which aligns closely with our corporate objective of drilling to generate shareholder value.”
The exploration activities planned for Mt McKenna include soil and rock chip sampling, a gravity survey and drilling.
These activities are set to commence immediately following the completion of a cultural heritage survey, which is a standard prerequisite for mining operations in the region.
The proximity of Mt McKenna to Laverton is a logistical advantage for Platina, promising streamlined and cost-effective mobilisation for the upcoming exploration activities.
The geological potential of Mt McKenna is underscored by a contact zone that exists between a greenstone belt and a syenitic intrusion.
This area is intersected by significant regional faults, namely the Apollo and Granite Well faults, which may serve as pathways for gold mineralisation to reach the surface.
Moreover, high-grade gold rock chips and nuggets have been discovered near these regional faults, structures and intrusions.
Furthermore, there is an opportunity for nickel mineralisation within the Diorite Hill layered mafic-ultramafic intrusive complex in the south-eastern part of the tenement.
