Platina Resources welcomes Supreme Court of WA decision in regard to Munni Munni transaction

"This has enhanced the number of options available to create value from the project,” said Platina managing director Corey Nolan.

Proactive Published 26/02/2021

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Platina Resources Limited (ASX:PGM) (OTCMKTS:PTNUF) has welcomed the decision of the Supreme Court of Western Australia in proceedings against Artemis Resources Limited and its subsidiaries Karratha Metals Pty Ltd and Munni Munni Pty Ltd (MMPL).

These proceedings related to a proposed transaction for the Munni Munni Project in Western Australia’s Pilbara region that hosts a large palladium deposit with platinum, gold and rhodium credit.

Platina’s managing director Corey Nolan said the judgement provided the parties with the opportunity to assess the optimal strategy to move the project forward.

“Good metals to be in”

He said, “The Munni Munni Project near Karratha in Western Australia is host to one of Australia’s largest undeveloped palladium deposits with credits of platinum, gold and rhodium.

"The palladium and rhodium prices have climbed to record highs this year so, like gold, they are good metals to be in right now.

"This has enhanced the number of options available to create value from the project.”

Court proceedings

Platina brought the proceedings as it considered that:

Artemis and MMPL were unable to proceed with contractual arrangements they had entered into with UK, AIM-listed company Empire Metals Limited as MMPL was not a party to a Heads of Agreement entered into between Platina, Karratha and Artemis dated August 4, 2015; and
Each of Artemis, Karratha and MMPL had breached the terms of the Heads of Agreement by reason of the proposed transaction.

In a statement, Platina said: “Platina is pleased to announce that the Court delivered its judgment in the Proceedings on February 23, 2021 and, whilst it was unable to find that there had been a breach of the Heads of Agreement, it accepted Platina’s application for declaratory relief, declaring that:

MMPL is not a party to the Heads of Agreement, or the Joint Venture Agreement established by and under the Heads of Agreement; and
The parties to the Joint Venture remain Platina and Karratha.

“Additionally, the Court has ordered that Artemis, Karratha and MMPL pay 70 per cent of Platina’s costs of the Proceedings from October 26, 2020, onwards.”