VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - July 31, 2017) - Platinum Group Metals Ltd. (TSX:PTM)(NYSE:PLG) ("Platinum Group" or the "Company") provides a corporate update regarding the previously announced restructuring of the Maseve Mine, development work at Waterberg and the ongoing strategic alternatives process.
Maseve Platinum Mine
The Company has successfully changed the operating plan at Maseve and lowered its cost structure to align with a reduced production ramp up profile. Production guidance will be provided as operations commence under the new operating plan in the months ahead.
Contractor terminations and consultations with labour unions have been completed in a positive climate of mutual respect and in accordance with the South African Labour Act. All major contracts and union agreements have been settled and agreed promptly, in-line with the Company's budgeted plan. This has allowed for detailed manpower planning for the new mine plan going forward.
Details of the new mine plan are in final preparation in consultation with the continuing mining contractor, Redpath South Africa. Changes to the management and supervision of the mine have also been made with a focus on near term performance.
The Maseve Mine has good potential in terms of grade, underground developed access, completed infrastructure and a mill that operates in line with design criteria. During the transition period, restructuring work has focused on improvements to the underground infrastructure.
Under the new mine plan, a hybrid method will be utilized, consisting of mechanized primary access development and conventional stoping. The focus will be to achieve positive cash flow with tight cost control, as soon as possible. As previously announced the Company is expected to require US$15 million to US$20 million to achieve this objective. The company is exploring further debt, the sale of assets or equity as methods of financing.
Waterberg Project
At the Waterberg Project, the Company has completed a detailed shareholders agreement with JV partners the Japan Oil, Gas and Metals National Corporation ("JOGMEC") and Mnombo Wethu Consultants. The Company is awaiting approval by the Department of Mineral Resources for the transfer of the project Prospecting Permits into the project holding company, Waterberg JV Resources Pty Ltd. The Company plans for Waterberg JV Resources Pty Ltd to apply for a mining right in 2017. Funding for the Waterberg Project is currently provided by JOGMEC as part of their earn-in commitment. Engineering, drilling, hydrological and geological work for a planned Definitive Feasibility Study for the Waterberg Project is ongoing.
Strategic Alternatives Update
The Company continues to work with BMO Capital Markets and Macquarie Capital to review and assess strategic alternatives. The Company has received several proposals and is actively engaged in evaluating a number of specific opportunities at both the asset and corporate levels.
Several expressions of interest have been received for the Maseve Mine assets. The Company recognizes the opportunity for significant regional synergies in the Western Bushveld region. In addition to the execution of its own revised mine plan at Maseve, the Company is actively exploring possible synergies, sale of assets, joint ventures, direct investment and custom milling.
The Company has active interest in its Waterberg Project from multiple parties in South Africa and internationally with discussions ongoing. Interest in Waterberg is driven by the strategic nature of the Waterberg deposit as one of the only significant primary platinum and palladium assets globally with a thick, low cost, fully mechanized mine plan. The deposit is in contrast to narrow, high cost, deep level platinum mining. The Company regards Waterberg as an important core asset.
About Platinum Group Metals Ltd.
Platinum Group, based in Johannesburg, South Africa and Vancouver, Canada, has a successful track record with more than 20 years of experience in exploration, mine discovery, mine construction and mining operations.
Formed in 2002, Platinum Group holds significant mineral rights and large-scale reserves of platinum and palladium in the Bushveld Igneous Complex of South Africa, which is host to over 70% of the world's primary platinum production. The Company is currently focused on ramping up the Maseve Mine, its first near-surface platinum mine, to commercial production.
Platinum Group has delineated new low-cost, near-surface reserves on the North Limb of the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk type of large-scale, shallow low-cost platinum, palladium and gold deposit. Waterberg is one of the only large-scale dominantly palladium deposits in the world.
Qualified Person
R. Michael Jones, P.Eng., the Company's President, Chief Executive Officer and a significant 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 the Independent Qualified Person reports as well as visiting the site regularly.
