Platina Resources Limited

Platina Resources Limited

July 07, 2008 09:00 ET

Platina Resources Announces Private Placement Investment by Panther Palladium LLC

BRISBANE, AUSTRALIA--(Marketwire - July 7, 2008) - Platina Resources Limited ("Platina" or the "Company") (ASX:PGM) is pleased to announce that it has entered into a Share Subscription Agreement (the "Agreement") with Panther Palladium LLC ("Panther") under which Panther will acquire approximately 19.99% of the shares of Platina at an issue price of $A0.55 per share, with gross proceeds totalling approximately A$6.4 million, by way of a private placement.

The private placement investment will proceed in two tranches. Under the Agreement:

- Panther has initially subscribed for approximately 7.0 million shares or 12.95% of Platina, at an issue price of A$0.55 per common share on a private placement basis under the authority of the Platina Board of Directors; and

- Panther will additionally subscribe for approximately 4.7 million shares at an issue price of A$0.55 per share on a private placement basis subject to approval at a special shareholders' meeting. When completed, this second subscription will have the effect of raising Panther's ownership interest in Platina to approximately 19.99%.

All shares placed under the Agreement are subject to a voluntary 12 month hold period. Platina will move to convene the required shareholders meeting as soon as is practicable.

The placement pricing of $0.55 per share represents a premium of 22.2% over the Company's recent rights issue pricing and a premium of 8.6% over the one month's volume-weighted average price of PGM shares on the ASX.

The transaction provides Panther with a significant level of ownership whilst assisting with Platina's funding requirements for its 2008 field pre-feasibility work in Greenland and elsewhere. Platina's Executive Chairman Mr. Robert W. Mosig said the investment by Panther in Platina represented a significant milestone for the Company. "We now have sufficient funds to carry out extra pre-feasibility work at our flagship project Skaergaard in eastern Greenland, whilst continuing our cutting-edge PGM exploration activities both here in Australia and overseas," he said. "Additionally, together with long-time Platina shareholders Mr. Mark Creasy and Dr. Peter Woodford here in Australia, Platina now has a respected and knowledgeable shareholder from the Northern hemisphere in Mr. Tom Kaplan via the investment by Panther. We see this investment as a vote of confidence in Platina's portfolio of assets and our achievements in advancing our projects in Greenland and Australia so far. We expect that Panther's investment will accelerate Platina's growth and development."

About Panther Palladium LLC

Panther Palladium LLC, which focuses on value-oriented, longer-term opportunities in the PGM sector, is a Delaware I, U.S limited liability company controlled by a trust related to the family of US mining investor Dr. Thomas Kaplan. Dr. Kaplan serves as chairman of privately held Electrum LLC and Leor Energy LLC.

About Platina Resources Limited

The primary business of the Company is the evaluation, acquisition, exploration and development of PGM properties located outside the Bushveld district in South Africa. The Company's principal asset is its 100% owned Skaergaard project, located approximately 450km due west of Iceland on the eastern coast of Greenland. Platina has also acquired several other PGM exploration properties in eastern Greenland. The balance of Platina's other PGM exploration assets are located in Australia.

Platina Resources Limited is listed on the Australian Stock Exchange and its common shares trade under the symbol "PGM". Platina recently concluded a Renounceable Rights Issue priced at A$0.45 per share which was taken up by over 85% of shareholders. The Rights Issue, which was underwritten by Patersons Securities of Perth, raised over A$3.3 million. After the 19.99% placement to Panther, the Company will have some 58.4 million shares on issue and approximately A$11.0 million in cash on hand. CPM Group acted as financial advisor to Platina on this transaction. Other information relating to Platina is available on the Company's website at

In light of the Panther investment, the Board of Platina is examining the potential for a dual listing on an appropriate Northern hemisphere exchange.

Forward-Looking Information

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Platina cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such factors include, but are not limited to any inability of Panther to purchase common shares as planned, or an inability of Platina to issue common shares from treasury. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Platina's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Platina has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Platina assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

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