Platina raises cash for Owendale studies

PERTH (miningweekly.com) – ASX-listed Platina Resources will raise some A$7-million from sophisticated and institutional investors to fast-track the completion of prefeasibility studies at its Owendale scandium, cobalt, nickel and platinum project, in New South Wales.

Platina on Thursday said it would place up to 52.82-million shares, at a price of 13.5c each to raise the funds. The placement price represented a discount of 11.7% to the company’s five-day volume weighted average price leading up to the finalisation of the placement.

“We are pleased with the overwhelming demand for this placement and thank new investors for their support and acknowledge the continued support of our existing shareholders,” said MD Rob Mosig.

Funds raised from the placement will be used to fast-track the completion of a prefeasibility study at the Owendale project in the second quarter of this year, followed by the completion of a definitive feasibility study (DFS) by the end of this year.

The DFS will include the development of a pilot plant to run continuously for two months.

Funds would also be directed towards drilling required to complete the feasibility studies, which will include infill drilling and drilling for tailings and waterbore studies, and to update the cobalt resource.

“Following completion of drilling, we expect to update the cobalt resource associated with the project. High-grade cobalt mineralisation remains open in several areas and we are excited to further develop and define this resource over the coming months,” Mosig said.