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Platinum Group Metals Announces Proposed Sale of Maseve Mine
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - Sept. 6, 2017) - Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (NYSE MKT:P
About this update from Platinum Group Metals Ltd.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - Sept. 6, 2017) - Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (NYSE MKT:PLG) (\"Platinum Group\" \"PTM\" or the \"Company\") announces that it has entered into a term sheet (the \"Term Sheet\") to sell Maseve Investments 11 Proprietary Limited (\"Maseve\") to Royal Bafokeng Platinum Limited (\"RBPlat\") in a transaction valued at approximately US$74.0 million, payable as to US$62.0 million in cash and US$12.0 million in RBPlat common shares. RBPlat has today published its own news release regarding this transaction. Maseve is the operating and holding company for the Maseve Mine, located on the Western Limb of the Bushveld Complex near Rustenburg, South Africa. The Company owns an indirect 82.9% equity interest in Maseve. The cash proceeds of the sale will be used to repay debt. Looking forward the Company plans to focus on its large-scale Waterberg project, a palladium dominant development asset where the majority of the Company's mineral reserves and resources are located. The Maseve sale transaction is to occur in two stages: RBPlat is to pay Maseve US$58.0 million in cash to acquire the concentrator plant and certain surface assets of the Maseve Mine, including an appropriate allocation for power and water (the \"Plant Sale Transaction\"). Maseve will retain ownership of the mining rights, power and water rights as well as certain surface rights and improvements. The payment to be received by Maseve will be remitted to the Company's South African subsidiary, Platinum Group Metals (RSA) (Pty) Ltd. (\"PTM RSA\"), in partial settlement of loans due to PTM RSA. This first payment due from RBPlat is conditional upon the satisfaction or waiver of certain conditions precedent, including but not limited to the negotiation and execution of definitive agreements, the approval, or confirmed obligation, of the holder of the remaining 17.1% equity interest in Maseve, Africa Wide Mineral Prospecting and Exploration Proprietary Limited, the approval of PTM's secured lenders, the approval of the South African Competition Commission (\"Competition Approval\") and completion of due diligence which may result in additional conditions. Closing of the Plant Sale Transaction is anticipated in two to three months. RBPlat is to pay PTM RSA US$7.0 million in commo...