After a bit of DD on the Munni Munni 100% owned PGM PGE's in WA...

After a bit of DD on the Munni Munni 100% owned PGM PGE's in WA and the executed deal with Artemis Resources Ltd (ARV) in August 2015, it seems that Platina has come away with a very good deal in view of the current ARV share price.

When the original deal was struck PGM acquired 100 million ARV shares at the time. The ARV share price was the running around 1 cent per share (~$100k for the transaction) enabling ARV to spend $750K over 3 years to gain 70% of the Munni Munni project including all minerals.

In the meantime (Jan 2017) ARV did a consolidation of shares, diluting all shareholders in a 1 for 20 issue.

So 100 million shares became 5 million shares in the new scheme of things.

It now transpires that the ARV shares, post consolidation, are trading around 17.5cents per share. That makes the PGM post ARV consolidation shares worth 5  mill x $0.175 = $ 875,000 as opposed to the 100 mill x $0.01 = $100K pre consolidation deal. Not too shabby and a big boost to the PGM coffers.

I checked the last annual PGM financial position ( December 2016) and noted that those shares had not been sold at that time. If they had been sold since you would have thought a 3B notice would have been issued for their disposal.

A quick check of WA online records show PGM as the 100% owner and ARV does not show up as a beneficiary. ARV have not spent money on it yet. If ARV are to keep their side of the deal they need to spend $750K on the exploration at Munni Munni or potentially lose the 70% earn in. It's something they can ill afford since they need a contiguous tenement presence with the " Newly" discovered the potential presence of the Witswatersrand Conglomerate, Iron, Carbon, Mafic etc style of Archean age Gold mineralisation nearby the Munni Munni in the Fortescue group of rock styles.

So what does it all mean?

It means a lot of extra Money to PGM.  I noted that ARV were looking to drill below the Ultramafic laterites hoping to uncover gold/copper/Co etc and of course extend the known PGE mineralisation in the process.

So if ARV consume the JV to gain 70% interest, then I assume the PGM 30% residual could become very valuable.
I also note in one of ARV's reports that they could then ask the JV partner for a pro rate contribution towards further expenditures to expand the project. Maybe PGM should keep 100% of the Mining licenses (yes! mining licenses.. not granted exploration licenses ) if ARV default.

Not being privy to the exact terms of agreement one can only postulate the hypothetical, however, the post deal

reports can reveal a lot. Here's a few  snippets.












Other current assets include the Artemis Resources shares denoted as item 12 in the footnotes in the mid year 2016 financials, as " available for sale financial assets - investments in listed companies" .. $100,222  .. remembering that 100,000,000 Artemis shares @ 1 cent per share ~ $100K  (pre consolidation).

These, ostensibly, were described as non current assets in the December 2016  financials above.



This years Artemis share consolidation




I think all this could be a very good outcome for the PGM shareholders right now... just need to check to see if the ARV shares were disposed off for a song since the above financials.

But That's my opinion.

Cheers

HR

Make of it what you will, no advice given or intended. I am a shareholder and I want positive results for all my investments, PGM included. Knowledge is king..DYOR