Platina Resources Boosts Cash Balance and Lowers Enterprise Valuation with Milestone Payment

Platina Resources Ltd (ASX:PGM) has further enhanced its balance sheet through the receipt of a US$4 million milestone payment.

When converted to local currency, this equates to around A$6 million.

The payment comes from the sale of the Platinum Scandium Project to Rio Tinto Ltd (ASX:RIO).

Platina may also receive future cash payments up to A$4.5 million, subject to Rio achieving project permitting milestones and return of its warranty retention bond.

Enterprise value

Platina now holds around A$13 million in cash, placing the company in an enviable position of being able to fund upcoming exploration programs.

The company is currently capped around A$16 million.

This delivers an enterprise value of just A$3 million.

Exploration plan

The company is actively planning and securing approvals to commence a major phase of exploration.

A maiden air-core drilling program was recently completed at the Beete Gold Project, 50 kilometres south of Norseman in Western Australia.

Boosting news flow, more than 2,000 assay results are expected in late July 2024.

Beete covers 134 square kilometres within what is believed to be a possible extension of the Norseman greenstone belt, a prolific gold producing region.

The area has not been systematically explored historically.

Platina holds a portfolio of gold assets in Western Australia, along with some investments in early stage listed companies.

 

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