Business
Impala Platinum Holdings Completes Phase I US$30 Million Investment into Platinum Group Metals
VANCOUVER, British Columbia and JOHANNESBURG, South Africa, Nov. 06, 2017 (GLOBE NEWSWIRE) -- Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platinu
About this update from Platinum Group Metals Ltd.
[{"type":"text","content":"VANCOUVER, British Columbia and JOHANNESBURG, South Africa, Nov. 06, 2017 (GLOBE NEWSWIRE) -- Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platinum Group”, “PTM” or the “Company”) is pleased to report the closing of the first phase of the transaction involving the Waterberg platinum group metal (“PGM”) Project (the “Waterberg Project”) announced on October 16, 2017 with Impala Platinum Holdings Ltd. (JSE:IMP) (“Implats”), Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”), and Waterberg JV Resources Proprietary Ltd. (“Waterberg Resources”). Platinum Group Metals has received consideration of US$17.2 million from Implats for the sale of an 8.6% interest in the Waterberg Project and JOGMEC has received US $12.8 million for the sale of a 6.4% interest in the Waterberg Project. R. Michael Jones, CEO of Platinum Group Metals said, “We are very pleased to close the first phase of this transaction and to welcome Implats to the Waterberg team. We will immediately get to work on the Definitive Feasibility Study. Waterberg represents a large-scale PGM resource with an attractive risk profile given its shallow nature, which facilitates fully mechanized production with the potential for the project to have amongst the lowest operating costs in the PGM sector. The deposit is dominated by palladium at a time when prices and interest in this essential metal are increasing.” Transaction Summary: Implats has purchased a 15.0% interest in Waterberg Resources, which holds the Waterberg Project, for US$30.0 million (the “Initial Purchase”); Implats has the option to increase its stake in Waterberg Resources (the “Call Option”) to 50.01% through additional purchases and earn-in arrangements totaling US $166.0 million following the completion of a Definitive Feasibility Study; and Implats has a right of first refusal to smelt and refine Waterberg concentrate. If Implats exercises its Call Option to advance to a 50.01% interest in Waterberg Resources, JOGMEC will retain a 5% interest and certain metal marketing rights to final metal related to the project, while Platinum Group would retain a 31.96% direct and indirect interest in Waterberg Resources. The transaction agreemen...