Shareholders of Platinova Resources (TSE) have given the green light to a proposal to transfer the company’s business to Greenland under an arrangement that includes an approximate $2-million equity investment from the Greenland government.
The Toronto-based junior has a portfolio of properties in Greenland, a self-governed territory which is under the jurisdiction of Denmark.
President Robert Gannicott said Platinova will become a mining company registered in Greenland, but its shares will continue to trade on The Toronto Stock Exchange. The company will be seeking a European listing, possibly in London, he said.
According to Gannicott, the government of Greenland is making extensive changes to its mining and taxation laws. Because of the new legislation, he said, major companies have expressed a renewed interest in exploring in Greenland.
Earlier this year, Platinova opened an office in Nuuk, the capital of Greenland. In making the move to Greenland, Platinova will no longer be involved in exploration projects outside of Greenland, with the exception of its 49% interest in a wollastonite property near Deloro, Ont. Platinova will spin off the wollastonite project interest into a newly created company, PVA Minerals Inc.
The new Greenland company, to be known initially as ISCO (Inuit Service Co. A/S), will eventually carry the title Platinova A/S.
Current Platinova shareholders will have a 96.4% voting interest in ISCO. The remaining 3.6% voting interest in ISCO will belong to the Greenland Home Rule Government (the result of its $2-million investment).
Platinova has about 27.6 million shares outstanding. Owner of 15.8% of the stock is Goldcorp Investments (TSE), which controls gold-producer Dickenson Mines. Gannicott owns 10.9% of Platinova’s stock and a convertible debenture which, if exercised, would boost his interest in the company.
The most prominent of Platinova’s projects in Greenland are two precious-metal prospects on the east coast. The more advanced of these gold-platinum group metal properties is the Skaergaard (gold-palladium), which is proving up to be a low-grade, high-tonnage situation. At the other property, Kap Edvard Holm, 15 km to the southwest, the company reported a new platinum-gold discovery made late in the 1990 field season.
Other exploration projects include the Gardar, with zirconium, yttrium and rare earth credits; Nuussuaq, a nickel play in which Falconbridge may earn a 51% interest; and Disko, a gold prospect. All of these projects are on the west coast.
Be the first to comment on "Platinova moving to Greenland"