Mineral exploration and development company Platina Resources announced that it would continue to fast track the development and Feasibility Study of the high grade Owendale Scandium and Platinum deposit despite the collapse of negotiations for partnership with Chinalco Resources Corporation.
The announcement comes after the Chinese company told Platina that it will terminate negotiations for the project, citing “volatile China share market” and the forecasted decline in aluminium prices for 2016 as reasons behind the move.
“In September last year, the Company entered into detailed due diligence investigations and general negotiations with Chinalco which culminated in a six-day site visit to Owendale in December 2015. Chinalco advised the Company that it would not proceed with negotiations at this stage against the backdrop of a highly volatile China share market and forecasted lower aluminium production and prices for 2016,” Platina said in a statement to the ASX on Wednesday.
“Chinalco also cited recent internal policy changes as the main reason for its decision to withdraw from negotiations.”
The company also advised shareholders that it would continue to seek relevant major aluminium focused company as a potential joint venture partner for its project.
Platina Resources’ Owendale Project is located in central New South Wales, approximately 75km North-West of Parkes, and 350km East of Sydney.
The Mineral Resource estimate for the Project give a total contained metal of 520,000oz platinum and 9,100 tonnes of scandium metal. It represents Australia’s newest platinum resource and the world’s largest, most high-grade scandium deposit.