Dragon Mining has announced that it is to sell its platinum group metal projects in Finland.

The firm has entered into a Heads of Agreement with Mokuti Mining to sell four of its non gold exploration projects it acquired in 2003 including some pgm sites with encouraging prospects.

Under the deal Dragon will obtain 10 million shares in Mokuti and 10 million options exercisable at 20 cents before 31 December 2006, accounting for approximately 33 per cent of the expanded shareholder base.

Mokuti will then assume the projects, and also take on board Dragon's staff in Finland who have experience with the projects and exploration for base and platinum group metals in Finland.

The purchase should transform Mokuti into a significant junior base metals explorer with a substantial resource base at Kylylahti in North Finland.