Business
Platinum Group Metals Ltd. Completes Step One for US$58M Maseve Mine Sale
VANCOUVER, British Columbia and JOHANNESBURG, South Africa, Feb. 14, 2018 (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, Feb. 14, 2018 (GLOBE NEWSWIRE) -- Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platinum Group” “PTM” or the “Company”) reports that all remaining conditions precedent to the sale of the Maseve concentrator plant and certain surface rights (“Step One”) to Royal Bafokeng Platinum Ltd. (“RBPlat”) have been fulfilled. The Company and RBPlat executed definitive sale and purchase agreements on November 23, 2017 in a transaction valued at approximately US$74 million (the “Maseve Sale Transaction”)1. Step One may now proceed, with payment of US$58 million in cash to Maseve to occur coincident with the registration of the applicable surface rights to a wholly owned subsidiary of RBPlat’s at the South African deeds office, a process that normally takes approximately four weeks. RBPlat is next (“Step Two”) to acquire 100% of the shares in Maseve Investments 11 (Pty) Limited (“Maseve”), the holding company of the Maseve Mine, and all shareholder loans owed by Maseve for an aggregate consideration equal to US$16 million. Maseve and its shareholders have passed resolutions to approve Step Two and notice periods under the South African Companies Act for dissenting shareholders to require court review of the resolutions or have Maseve purchase their shares under the exercise of appraisal rights have passed. The parties continue to work together in fulfilment of the remaining conditions precedent to the completion of Step Two, which includes the Department of Mineral Resources approval to the transaction, under section 11 of the Mineral and Petroleum Resources Development Act, which is expected in mid-2018. The Company’s lenders have consented to the Maseve Sale Transaction. As previously agreed with the Lenders, the Company must raise US$20 million in subordinated debt and/or equity within 30 days of the approximate US$46 million first lien facility due to Sprott Resource Lending Partnership (“Sprott”) being repaid, which is to occur when payment for Step One is received. A second raise has been amended to US$20 million (US$10 million previously) in subordinated debt and/or equity before July 31, 2018 (previously June 30, 2018). Proceeds in each instance are to repay and discharge remaining amounts due to lenders. The increa...