Platinex Inc announced that it has acquired 63 mining claims adjoining its Shining Tree gold project in Ontario’s Abitibi region through an agreement with Skead Holdings Ltd.
The company said the acquisition increases the Shining Tree property holdings from 21,847 hectares (ha) to 23,219 ha and covers area in the central western portion of the project.
Platinex noted the new acquisition covers some of the down dip extension and a prominent spur fault associated with the Ridout-Tyrrell Deformation Zone (RTDZ), which has been identified as the likely source of highly anomalous gold indications in a provincially significant gold dispersion train.
READ: Platinex acquires new mining claims to expand its W2 project in Ontario’s Ring of Fire
To complete the acquisition, the company said it will pay $11,500 in cash and issue 400,000 Platinex shares to Skead, which will be subject to a four-month hold period as well as approval from the Canadian Securities Exchange.
It added that the mining claims are subject to a 2% net smelter returns (NSR) royalty, of which Platinex has the right to repurchase up to 1% at the rate of $400,000 per 0.5%.
Platinex creates shareholder value through the opportunistic acquisition and advancement of high-quality projects in prolific Ontario mining camps. Its current assets include a 100% ownership interest in the district-scale W2 copper-nickel-PGE project and a 100% interest in the 225 square km Shining Tree gold project in the Abitibi region of Ontario, a world-renowned gold district.
Platinex is also developing a NSR royalty portfolio and currently holds royalties on gold, PGE, and base metal properties in Ontario.
Contact Sean at sean@proactiveinvestors.com