Greenland planning to purchase $2 m in Platinova shares

Junior mining company Platinova Resources (TSE) of Toronto will take on a new shareholder in the form of the government of Greenland, which says it intends to purchase about $2 million worth of Platinova shares at a yet-to-be- determined share price. Platinova is active at the exploration stage in Greenland. In particular, the junior is confident its East Greenland gold-platinum Skaergaard project will grow to become a world-class mining operation.

The Greenland government says its plan to become involved in mineral companies such as Platinova will allow for the fixing of taxation terms at an internationally competitive level and the removal of options for state participation in mineral projects.

Platinova will open an office in Nuuk, the capital of Greenland, in January, 1991. The corporate registration will then be transferred to Denmark/Greenland with Nuuk becoming the head office. Platinova shares will continue to be listed on the TSE and will be traded in London, the company says.

Platinova recently reached a deal with Corona (TSE) to acquire the senior’s 51% interest in the East Greenland project. Corona, which spent $3 million to earn that interest, is being issued two million shares of Platinova for the 51% interest, and is being given the right to participate again in the project at the post-feasibility stage.