Canadian Platinum Corp. signed a letter of intent to acquire a privately held natural gas company in an all-scrip deal, with the number of consideration shares to be determined.

The transaction is expected to close in late October, subject to a definitive agreement, with the company expecting the acquisition to support its mineral exploration and development efforts.

Canadian Platinum said Aug. 8 that the target company's primary asset comprises 10 shut-in natural gas wells on 1,400 acres in the Fort Worth Basin in Texas.

The company plans to rework and refracture the wells, aiming to generate significant cash flows to expand and develop a portfolio of producing oil and gas and mineral properties.

Canadian Platinum's mineral properties include the polymetallic Peter Lake project in Saskatchewan and a 50% option on the Whiskey Flat copper project in Nevada.