(Sharecast News) - Minerals exploration and development company Alien Metals has entered into a binding heads of agreement with ASX-listed Platina Resources, it announced on Wednesday, to conditionally acquire Platina's 30% joint venture interest in the Munni Munni platinum group metals and gold project in the West Pilbara region of Western Australia.
The AIM-traded firm said the project is adjacent to its "highly-prospective" Elizabeth Hill project, which already hosted potential for further significant silver, copper, nickel and platinum group element (PGE) mineralisation.
It said the Munni Munni Project hosted the largest intrusion in the West Pilbara, and one of the largest undeveloped primary PGE resources in Australia, with the historic non-compliant JORC 2004 resource estimate implying 24 million tonnes at 2.9 grams of PGE and gold per tonne, for 2.2 million ounces of PGE and gold.
Around 95% of the historical resource estimate was in the measured and indicated categories, with the historic JORC resource estimate suggesting that the deposit contained 1.14 million ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold, and 76,000 ounces of rhodium.
The company said the project covered four granted mining leases and one exploration lease, covering a combined 75.9 square kilometres.
It said the remaining 70% was owned by Artemis Resources as the joint venture operator.
Total consideration was AUD 2.23m (£1.2m), of which AUD 1.98m would be satisfied by the issue of Alien shares.
Completion was expected "as soon as possible", with Alien saying it would provide further updates in due course, as appropriate.
"We are very excited to commence the consolidation of the Munni Munni and Elizabeth Hill region," said chief executive officer and technical director Bill Brodie Good.
"The presence of one of Australia's largest unmined PGE deposits located so close to one of Australia's highest grade silver deposits provides an amazing exploration and development opportunity.
"Munni Munni has been subject to considerable historical expenditure, which led to the delineation of over two million ounces of precious metal with potential for more along strike and at depth."
Brodie Good said the company believed that the "robust demand" for PGEs via the transition to electric vehicles would lead to projects like Munni Munni being in high demand.
"Subsequently, should the acquisition complete, we look forward to further advancing the project with our joint venture partner, Artemis."
At 1247 GMT, shares in Alien Metals were down 2.06% at 0.76p.
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