Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) reports that shareholders of Waterberg JV Resources Proprietary Limited have executed a formal Amended Purchase and Development Option agreement with Impala Platinum Holdings Ltd.
In consideration for the amendment, announced February 27, 2020, Implats is funding 100% of a new implementation budget and work program effective February 1, 2020. The Work Program, as approved by Waterberg JV Co., is aimed at increasing confidence in specific areas of the Waterberg DFS while awaiting the expected grant of a Mining Right and Environmental Authorization and is estimated to cost approximately Rand 55 million. The Work Program is being carried out remotely and in compliance with current South African health related stay at home restrictions.
The termination date of Implats’ Purchase and Development Option was amended from the original date of April 17, 2020 to 90 calendar days following receipt of an executed Mining Right for the Waterberg Project. All other terms of the Purchase and Development Option remain unchanged. Amounts spent by Implats for the Work Program will be offset against Implats’ future development funding commitment should it elect to exercise the Purchase and Development Option. The previous guidance for the grant of the Mining Right in Q2 2020 may be delayed by the current South African stay at home restrictions.
Platinum Group will continue to be the Manager of the Waterberg Project, as directed by the technical committee of Waterberg JV Co. A majority of the Company’s South African personnel are engaged to complete the Work Program, which is being directed by Implats’ technical personnel.
Further detail on the Purchase and Development Option
On November 6, 2017, Implats purchased 15% of the Waterberg JV Co. for US$30 million. Implats was also granted a Purchase and Development Option to increase its stake to 50.01% through additional share purchases from Japan Oil, Gas and Metals National Corporation (“JOGMEC”) for an amount of US$34.8 million and earn-in arrangements for US$130 million paid to Waterberg JV Co. to fund development work, as well as a right of first refusal to smelt and refine Waterberg concentrate.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground palladium and platinum deposit located in South Africa. The Waterberg Project was discovered by Platinum Group and is being jointly developed with Implats, JOGMEC, Mnombo Wethu Consultants (Pty) Ltd. and Hanwa Co. Ltd.