Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE
American) (“Platinum Group” “PTM” or the “Company”) is pleased to
announce as project operator that the Definitive Feasibility Study
(“DFS”) for the Waterberg Project is advancing according to plan.
The target date for the completion of the DFS is the end of
calendar Q1 2019. An updated resource model to be used in the DFS
is in the final stages of calculations and peer review.
Three-dimensional models have been provided to independent project
engineer for mine design, Stantec Consulting International LLC
(“Stantec”). The mine design involves bulk underground fully
mechanized methods. Optimization of the methods utilized for the
Company’s October 2016 Waterberg Pre-feasibility Study is in
progress. (See the technical report dated October 19, 2016 and
filed on SEDAR titled “Independent Technical Report on the
Waterberg Project Including Mineral Resource Update and
Pre-Feasibility Study”.) Stantec brings global mine design and
operating experience in these methods to the study.
Metallurgical test work and infrastructure
designs are also progressing well, led by independent project
engineer for plant design and metallurgy DRA Projects SA
(Proprietary) Limited, who are an experienced platinum and
palladium plant, engineering and construction firm. The DFS is
looking at two potential scales for the project as previously
announced, including a 600,000 tonne per month option and a 250,000
-350,000 tonne per month option.
A Mining Right Application for the Waterberg
Project, endorsed by all of the Waterberg Joint Venture partners,
including Impala Platinum Holdings Ltd. (“Implats”), Japan Oil, Gas
and Metals National Corporation (“JOGMEC”) and Mnombo Wethu
Consultants (Pty) Ltd. (“Mnombo”), was filed in early September
2018. The detailed consultation process in the area of the mine has
commenced as required under Environmental Assessment and Mining
Right regulations and specialist consultants have been engaged to
manage and document this process. Co-operation with the Capricorn
Municipality surrounding the mine has been active and positive
including work on regional water supply plans and infrastructure
under a recently signed co-operation agreement. Work on the planned
national electrical grid connection for the project is also
progressing well. Consultation on powerline servitudes and permits
are advancing on plan as part of the DFS.
Platinum Group Metals is the Waterberg project
operator and currently holds an effective 50.02% interest in the
project. Implats, the world’s second largest platinum producer,
owns a 15% interest. The project is being managed by a joint
technical committee which regularly brings together expertise from
the senior levels of all partners, including the construction and
operating experience of Implats. Mnombo, a black economic
empowerment company, holds a 26% project interest. The Company owns
a 49.9% interest in Mnombo. JOGMEC holds a 21.95% project interest
in the Waterberg Project and is in the process of transferring a
9.755% interest to Japanese conglomerate Hanwa Co., Ltd. Hosken
Consolidated Investments Limited, a South African black empowerment
investment holding company listed on the JSE with a US$1.1 billion
market capitalization, owns a 15% stake in Platinum Group. Implats
is an active participant in the joint venture and holds an option
to increase their stake to 50.01% following the completion of the
DFS.
Platinum Group Metals recently was in New York
for events and meetings of “Platinum Week”. The Waterberg Project
is dominated by palladium and there are very few deposits of this
type in the world. Palladium has been gaining market interest based
on continued demand in the auto sector, due to a growing trend
towards gasoline engines and hybrids that use palladium dominant
catalysts. Platinum Group Metals is focused on completing the DFS
for Waterberg on time and on budget with the assistance of its
project partners.
On November 23, 2017 the Company announced the
execution of binding legal agreements to sell Maseve Investments 11
Proprietary Limited (“Maseve”) to JSE listed Royal Bafokeng
Platinum Limited (“RBPlat”). The Company first reported the details
of the transaction in a news release dated September 6, 2017. The
sale later closed on April 26, 2018 after completion of regulatory
review and all conditions precedent, whereby RBPlat and its
wholly-owned subsidiary, Royal Bafokeng Resources Proprietary
Limited:
- acquired the concentrator plant and related surface assets
owned by Maseve for an aggregate consideration equal to the ZAR
equivalent of US $58 million; and
- acquired 100% of the shares in and shareholder claims owing by
Maseve for an aggregate purchase consideration equal to the ZAR
equivalent of US $12 million and the return to the Company of an
environmental bond valued at approximately US $4.0 million.
(collectively “the Maseve Transaction”).
The Company reports that it is in receipt of a
summons issued by Africa Wide Mineral Prospecting and Exploration
(Pty) Limited ("Africa Wide") whereby Africa Wide has instituted
legal proceedings in South Africa against the Company’s wholly
owned subsidiary, Platinum Group Metals (RSA) (Pty) Limited, RBPlat
and Maseve in relation to the Maseve Transaction. Africa Wide is
seeking, at this very late date, to set aside or be paid increased
value for, the closed Maseve Transaction. Africa Wide held a 17.1%
interest in Maseve prior to the Maseve Transaction. RBPlat
consulted with senior counsel, both during the negotiation of the
Maseve Transaction and in regard to the current Africa Wide legal
proceedings. The Company has also received legal advice to the
effect that the Africa Wide action, as issued, is ill-conceived and
is factually and legally defective.
Qualified Person
R. Michael Jones, P.Eng., the Company’s
President, Chief Executive Officer and a shareholder of the
Company, is a non-independent qualified person as defined in
National Instrument 43-101 Standards of Disclosure for Mineral
Projects (“NI 43-101”) and is responsible for preparing the
technical information contained in this news release. He has
verified the data by reviewing the detailed information of the
geological and engineering staff and independent qualified person
reports as well as visiting the Waterberg Project site
regularly.
About Platinum Group Metals
Ltd.
Platinum Group is focused on, and is the
operator of, the Waterberg Project, a bulk mineable underground
deposit in northern South Africa. Waterberg was discovered by the
Company. Waterberg has potential to be a low cost dominantly
palladium mine and Impala Platinum recently made a strategic
investment in the Waterberg Project.
On behalf of the Board of Platinum Group Metals
Ltd.
R. Michael JonesPresident, CEO and Director
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For further information contact: |
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R.
Michael Jones, President |
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or
Kris Begic, VP, Corporate Development |
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Platinum Group Metals Ltd., Vancouver |
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Tel:
(604) 899-5450 / Toll Free: (866) 899-5450 |
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www.platinumgroupmetals.net |
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Disclosure
The Toronto Stock Exchange and the NYSE American
LLC have not reviewed and do not accept responsibility for the
accuracy or adequacy of this news release, which has been prepared
by management.
This press release contains forward-looking
information within the meaning of Canadian securities laws and
forward-looking statements within the meaning of U.S. securities
laws (collectively “forward-looking
statements”). Forward-looking statements are typically
identified by words such as: believe, expect, anticipate, intend,
estimate, plans, postulate and similar expressions, or are those,
which, by their nature, refer to future events. All statements
that are not statements of historical fact are forward-looking
statements. Forward-looking statements in this press release
include, without limitation, JOGMEC’s potential transfer of a
portion of its interest in the Waterberg Project to Hanwa; the
potential for Implats to exercise its rights and fund additional
development work on the Waterberg Project; the timing and
completion of a DFS and updated resource model; the potential
production scale of the Waterberg Project; the Waterberg Project’s
potential to be a large scale, bulk mineable, fully mechanized,
low-cost dominantly palladium mine; [potential developments in the
palladium markets;] and the potential outcome of the Africa Wide
litigation. Although the Company believes the forward-looking
statements in this press release are reasonable, it can give no
assurance that the expectations and assumptions in such statements
will prove to be correct. The Company cautions investors that
any forward-looking statements by the Company are not guarantees of
future results or performance and that actual results may differ
materially from those in forward-looking statements as a result of
various factors, including additional financing requirements; the
Company’s history of losses; the Company’s inability to generate
sufficient cash flow or raise sufficient additional capital to make
payment on its indebtedness, and to comply with the terms of such
indebtedness; the LMM Facility is, and any new indebtedness may be,
secured and the Company has pledged its shares of PTM RSA, and PTM
RSA has pledged its shares of Waterberg JV Resources (Pty) Limited
(“Waterberg JV Co.”) to Liberty Metals & Mining Holdings, LLC,
a subsidiary of LMM, under the LMM Facility, which potentially
could result in the loss of the Company’s interest in PTM RSA and
the Waterberg Project in the event of a default under the LMM
Facility or any new secured indebtedness; the Company’s negative
cash flow; the Company’s ability to continue as a going concern;
completion of the definitive feasibility study for the Waterberg
Project, which is subject to resource upgrade and economic analysis
requirements; uncertainty of estimated production, development
plans and cost estimates for the Waterberg Project; discrepancies
between actual and estimated Mineral Reserves and Mineral
Resources, between actual and estimated development and operating
costs, between actual and estimated metallurgical recoveries and
between estimated and actual production; fluctuations in the
relative values of the U.S. Dollar, the Rand and the Canadian
Dollar; volatility in metals prices; the failure of the Company or
the other shareholders to fund their pro rata share of funding
obligations for the Waterberg Project; any disputes or
disagreements with the other shareholders of Waterberg JV Co. or
Mnombo Wethu Consultants (Pty) Ltd; the ability of the Company to
retain its key management employees and skilled and experienced
personnel; contractor performance and delivery of services, changes
in contractors or their scope of work or any disputes with
contractors; conflicts of interest; capital requirements may exceed
its current expectations; the uncertainty of cost, operational and
economic projections; the ability of the Company to negotiate and
complete future funding transactions and either settle or
restructure its debt as required; litigation or other
administrative proceedings brought against the Company; actual or
alleged breaches of governance processes or instances of fraud,
bribery or corruption; exploration, development and mining risks
and the inherently dangerous nature of the mining industry, and the
risk of inadequate insurance or inability to obtain insurance to
cover these risks and other risks and uncertainties; property and
mineral title risks including defective title to mineral claims or
property; changes in national and local government legislation,
taxation, controls, regulations and political or economic
developments in Canada and South Africa; equipment shortages and
the ability of the Company to acquire necessary access rights and
infrastructure for its mineral properties; environmental
regulations and the ability to obtain and maintain necessary
permits, including environmental authorizations and water use
licences; extreme competition in the mineral exploration industry;
delays in obtaining, or a failure to obtain, permits necessary for
current or future operations or failures to comply with the terms
of such permits; risks of doing business in South Africa, including
but not limited to, labour, economic and political instability and
potential changes to and failures to comply with legislation; and
other risk factors described in the Company’s most recent Form 20-F
annual report, annual information form and other filings with the
U.S. Securities and Exchange Commission (“SEC”) and Canadian
securities regulators, which may be viewed at www.sec.gov and
www.sedar.com, respectively. Proposed changes in the mineral law in
South Africa if implemented as proposed would have a material
adverse effect on the Company’s business and potential interest in
projects. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or
otherwise.
Estimates of mineralization and other technical information
included herein have been prepared in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”). The definitions of proven and probable Mineral
Reserves used in NI 43-101 differ from the definitions in SEC
Industry Guide 7. Under SEC Industry Guide 7 standards, a “final”
or “bankable” feasibility study is required to report Mineral
Reserves, the three-year historical average price is used in any
Mineral Reserve or cash flow analysis to designate Mineral Reserves
and the primary environmental analysis or report must be filed with
the appropriate governmental authority. As a result, the reserves
reported by the Company in accordance with NI 43-101 may not
qualify as “Mineral Reserves” under SEC standards. In addition, the
terms “Mineral Resource” and “measured Mineral Resource” are
defined in and required to be disclosed by NI 43-101; however,
these terms are not defined terms under SEC Industry Guide 7 and
normally are not permitted to be used in reports and registration
statements filed with the SEC. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into
reserves. Accordingly, descriptions of the Company’s mineral
deposits in this press release may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements of United States federal securities
laws and the rules and regulations thereunder.
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