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Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Treasury Metals (TSE: TML) and Platinex (CNSX: PTX) have entered into a non-binding agreement to consolidate their adjoining properties in northern Ontario’s prospective Shining Tree district.
Under the agreement, Treasury would transfer its wholly owned 50.5-sq.-km Shining Tree Fawcett East property to Platinex in exchange for 12.5 million shares and 5 million Platinex warrants.
Treasury would also transfer to Platinex its royalty interests in four exploration projects.
With a right to appoint a Treasury nominee to the Platinex board, the company would also have a right of first refusal to participate in further financings for a two-year period to maintain its percentage interest.
Platinex’s Shining Tree property currently covers 150 sq. km and is at the intersection of the Larder Lake and Michiwakenda Lake faults with and covers 21 km of the Tyrrell-Ridout deformation zone also host to Iamgold’s Cote Lake and Pan American Silver’s Juby gold deposits.
The combined property would be the largest gold-focused land package in the district
The combined property would be the largest gold-focused land package in the district.
“With the addition of the Shining Tree East property, Platinex’s Shining Tree property holdings will total 19,895 ha. (199 sq. km),” James Trusler, chairman of Platinex, said in a release.
“The expanded property will now adjoin the Pan American property in Tyrrell township which hosts the 4 million oz. Juby gold deposit and close proximity along east-west structures to the Cote Lake gold project. Significant potential for commercial gold deposits has been revealed in past exploration on Platinex’s property.”
To complete the transaction, the two companies need to complete additional due diligence and enter into a formal agreement by the end of the month.
Based on yesterday’s closing price of Platinex, the common share component of the proposed transaction would be valued at approximately C$250,000.
Treasury’s principal focus is currently on its Goliath project in northwestern Ontario.
(This article first appeared in the Canadian Mining Journal)
