Platinex gets into uranium exploration with new subsidiary

Platinex Inc (CSE: PTX, FSE: 9PX, WKN: A0MVNG) has established a new unlisted subsidiary called Green Canada Corporation. Together with this new entity, 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 with Green Canada Corporation is located in prime jurisdictions in Canada, providing an excellent starting point for successful development. Platinex has also transferred the option agreement entered into with Springer Mineral Resources to acquire the Muskrat Dam Critical Minerals project to its new subsidiary.

The establishment of Green Canada Corporation was linked to a private placement. In it, new shares of the subsidiary were sold at 0.09 Canadian dollars (CAD) to a group of wealthy institutional and corporate investors. This generated proceeds of CAD 500,000 for the new company. These 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 shareholders of Platinex, this means that they are gaining direct exposure to the uranium and critical minerals sectors through the Green Canada Corporation spin-off. This is very promising as Canada increasingly shifts its energy supply to green energy and at the same time experiences increasing global interest in investing in mineral exploration.

Green Canada Corporation is strategically positioned for this emerging transition with its advantaged portfolio of critical mineral discoveries. The uranium portfolio includes the following 100% owned projects: the Beartooth-Island uranium project in the Athabasca Basin, in the province of Saskatchewan with an area of 145 km², the Matoush-Otish Mountain project with 219 km² and the 8 km² Mistassini project in the province of Quebec, as well as three large claim blocks with a total of 126 km² in Elliot Lake in the province of Ontario. Last but not least, the Cypress uranium and copper project in the Athabasca Basin in Saskatchewan, which was recently acquired by Green Canada Corporation, rounds off the portfolio with an area of 34 km².

In consideration for the uranium portfolio, International Prospect Ventures, led by Glenn Mullan, will receive 7,500,000 common shares of Platinex valued at CAD 300,000, 2,666,667 common shares of Green Canada Corporation and net smelter returns 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 will allow Platinex to concentrate on further advancing its flagship W2 Copper-Nickel-PGE Project and its South Timmins Gold Joint Venture. At the same time, following the private placements, the completion of the uranium acquisition and the assignment of the Muskrat Dam project, the company will own approximately 60 per cent of the issued common shares of Green Canada Corporation. Platinex is also entitled to a 1.0 per cent net smelter return interest in Muskrat Dam once the earn-in conditions between GCC and Springer are satisfied. Shareholders can look forward to the registration of the new shares, which will be tradable once the proposed listing is completed.