Platinex Enters Uranium Exploration with New Subsidiary Green Canada Corp.
Platinex Inc.
(CSE: PTX, FSE: 9PX, WKN: A0MVNG) has spun off a new, unlisted subsidiary called Green Canada Corporation. Together with this subsidiary, the company has entered into a binding letter of intent with International Prospect Ventures to acquire a portfolio of uranium exploration properties.
The uranium portfolio that Platinex intends to acquire together with Green Canada Corporation is located in Canada’s best jurisdictions, providing an excellent starting point for successful development. Platinex has also transferred to its new subsidiary the option agreement concluded with Springer Mineral Resources for the acquisition of the Muskrat Dam Critical Minerals Project.
The establishment of Green Canada Corporation was accompanied by a private placement. New shares of the subsidiary were sold at 0.09 Canadian dollars (CAD) to a group of wealthy, institutional, and corporate investors. This generated revenue of 500,000 CAD for the subsidiary. The funds are to be used for mineral exploration and administrative costs of Green Canada Corporation.
A direct stake in attractive uranium projects for all Platinex shareholders
For invested shareholders, this means that through the spin-off of Green Canada Corporation, they acquire a direct engagement in the uranium and critical minerals sectors. This is very promising, as Canada is increasingly shifting its energy supply to green energies while experiencing growing global interest in investments in mineral exploration.
For this emerging transition, Green Canada Corporation is strategically positioned with its advantageous portfolio of critical mineral discoveries. The uranium portfolio includes the following projects as 100% interests: the Beartooth Island Uranium Project in the Athabasca Basin, Saskatchewan Province, covering 145 km², the Matoush-Otish Mountain Project with 219 km² and the 8 km² Mistassini Project in Quebec Province, as well as three large claim blocks totaling 126 km² in Elliot Lake, Ontario Province. Last but not least, the Cypress Uranium and Copper Project in the Athabasca Basin in Saskatchewan, recently acquired by Green Canada Corporation, rounds out the portfolio with an area of 34 km².
In exchange for the uranium portfolio, International Prospect Ventures, led by Glenn Mullan, will receive 7,500,000 common shares of Platinex valued at 300,000 CAD, 2,666,667 common shares of Green Canada Corporation, and net smelter royalties on the uranium portfolio. In total, these properties cover a total area of 650 km² with highly prospective terrain adjacent to proven uranium and rare earth projects.
Conclusion: The transaction allows Platinex to further advance its flagship W2 Copper-Nickel-PGE Project and its South Timmins Gold Joint Venture in Timmins. At the same time, following the private placements, completion of the uranium acquisition, and assignment of the Muskrat Dam project, the company will own approximately 60 percent of the issued common shares of Green Canada Corporation. Platinex is also entitled to a 1.0% net smelter return royalty on Muskrat Dam once the earn-in conditions between GCC and Springer are met. Shareholders can look forward to receiving the new shares, which will become tradable once the planned listing is completed.
