Platinex has formed a new unlisted subsidiary, dubbed Green Canada Corporation (GCC), to acquire a portfolio of exploration-stage uranium projects in Canada.

Together with its new subsidiary, Platinex has signed a binding letter of intent with Canadian uranium explorer International Prospect Ventures to acquire the Uranium portfolio.

In addition, Platinex has assigned its option agreement for the Muskrat Dam critical minerals project, with Springer Mineral Resources, to GCC.

Under the terms of the agreement, Platinex and GCC will acquire the Uranium portfolio, comprising the Beartooth Island Uranium project in Saskatchewan and the Matoush-Otish Mountain and Mistassini projects in Quebec.

The portfolio also includes the area immediately north and south of Consolidated Uranium’s Matoush Uranium Deposit, three large claim blocks in Elliot Lake, Ontario.

Platinex and GCC will also acquire claims at the Eco Ridge Uranium and REE project and the Cypress uranium and copper project in Saskatchewan.

In exchange, International Prospect Ventures will receive 7,500,000 common shares of Platinex, 2,666,667 common shares of GCC, and net smelter royalties on the portfolio.

Platinex will issue the shares subject to a 12-month hold period, and GCC its common shares subject to certain escrow conditions.

The transaction is expected to be completed on or around 6 October 2023.

Platinex president and CEO Greg Ferron said: “Platinex has an established history exploring for critical minerals in Canada, and with the uranium spot market signalling the future undersupply of uranium, the capital markets will be supporting new exploration ventures.

“The Green Canada portfolio complements Platinex’s Canadian critical mineral portfolio and is in line with our corporate strategy to be nimble and seize opportunities for accretive transactions that benefit our shareholders.”

According to Platinex, the acquired uranium projects cover more than 650km2 of highly prospective area, adjacent to established uranium and rare-earth element projects.

The Muskrat Dam Project has a significant base and rare-earth element potential, and the transaction will allow GCC to explore the Muskrat Dam greenstone belt in northwestern Ontario.

It also allows Platinex to continue to advance its W2 Copper-Nickel-PGE project and South Timmins Gold Joint-Venture in Timmins, northeastern Ontario.

Simultaneously, GCC has raised $500,000 in equity investment through private placement of its shares to a group of high-net-worth, institutional and corporate investors.

The new subsidiary will use the funds for mineral exploration and administrative expenses.