Platina Resources Ltd. may acquire up to 70% interest in the Blue Moon zinc-gold-copper-silver project in California under an agreement with Blue Moon Zinc Corp., with the joint venture planning to target resource expansion.
The company can earn an initial 50% interest by spending C$3.0 million on the project within 18 months, including at least 10,000 meters of drilling and metallurgical testing, and by paying C$250,000 in cash or shares.
After completing the first phase of the earn-in, Platina Resources will be able to increase its interest by 20% by spending C$3.8 million within 18 months, including completing a pre-feasibility study, and by paying another C$500,000 in cash or shares.
Blue Moon Zinc will subsequently have 20 days to ask Platina Resources to fund the next C$5.0 million of project expenditures, including its share of funding.
The company said Aug. 27 that Platina Resources also agreed to participate in a C$300,000 private placement priced at 5 Canadian cents per share and has an option to participate in a further private placement to increase its equity interest in Blue Moon to a maximum of 10%. The option expires Jan. 31, 2020.
Platina Resources is planning infill and resource expansion drilling at the Blue Moon property as well as exploration to expand resources.
Blue Moon hosts inferred resources of 7.8 million short tons grading 4.95% zinc, 0.46% copper, 1.33 ounces per ton silver, 0.04 oz/t gold and 0.29% lead at a cutoff of 4% zinc equivalent as of November 2018.
