Realm Resources strengthens PGM portfolio

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THE BOURSE WHISPERER: Platinum Group Metals hopeful Realm Resources has strengthened its existing portfolio of platinum group metals projects in South Africa.

Realm has signed a farm-in agreement) with Nkwe Platinum (Rooderand) (Pty) Ltd; a company in which ASX-listed Nkwe Platinum Limited holds a 70% interest.

Under the terms of the farm-in agreement, Realm can earn a 51% interest in the prospecting rights for platinum group metals, gold, silver, nickel, copper and cobalt granted in respect of Nkwe’s Rooderand prospect by spending $2 million in expenditure over a two year period.

“The addition of Rooderand is a good fit within our portfolio of PGM assets, and will enhance our near surface resource base both in terms of grade and ounces and improve our ability to realise value from our PGM portfolio,” Realm Resources managing director Richard Rossiter said in a company announcement.

Nkwe’s Rooderand prospect covers 535 hectares and is located on the Western Limb of the Bushveld Igneous Complex adjacent to Platinum Australia Limited’s Rooderand platinum project and Platmin Limited’s Pilanesberg open pit platinum mine.

Upon renewal of the prospecting rights for PGM, gold, silver, nickel, copper and cobalt granted in respect of the Rooderand prospect, Realm has a two year, Sole Funding Period, in which it can earn an undivided 51% interest in said prospecting rights.

It can do this by either spending $2 million on exploration and development; or by paying Nkwe an amount equal to the difference between $2 million and the amount of expenditure spent by Realm during the Sole Funding Period.

Realm has agreed to issue 5,000,000 shares to Nkwe, or its nominee, within five business days of the date of the farm-in agreement.

During the Sole Funding Period, Realm will be the manager of the Rooderand prospect.

The company will also be solely responsible for its administration and maintenance and will comply with any minimum annual expenditure requirements.

If Realm fails to spend $2 million in expenditure on the Rooderand prospect or pay Nkwe the adjustment amount during the Sole Funding Period, the farm-in agreement will terminate and Realm will have no interest in the Rooderand project.

Upon Realm acquiring a 51% interest in the prospecting rights granted in respect of the Rooderand prospect, Realm and Nkwe will enter into a joint venture on the terms and conditions set out in the agreement.