VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - Aug. 4, 2017) - Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (NYSE MKT:PLG) ("Platinum Group" or the "Company") announces that the transfer of all Waterberg Prospecting Rights held by the Company to a dedicated joint venture corporation, Waterberg JV Resources (Pty) Ltd, has been approved by the South African Department of Mineral Resources ("DMR"). Platinum Group Metals RSA Pty Ltd (100% owned by the Company) owns a 45.65% direct interest in the Waterberg Project. The Japan Oil, Gas and Metals National Corporation ("JOGMEC") holds a 28.35% direct interest in the project and BEE partner Mnombo Wethu Consultants (Pty) Ltd ("Mnombo") holds a direct 26.0% interest. The Company currently holds a 49.0% interest in Mnombo.
The Waterberg Project is one of the few large palladium dominant deposits in the world. The Company believes that as a result of its shallow depth, good grades and a fully mechanized mining approach, the Waterberg Project has the opportunity to be a safe mine within the lowest quartile of the industry cost curve. The project resources consist of 60% palladium and the Independent Pre-Feasibility Study on the Waterberg Project estimates that Waterberg will produce 472,000 ounces of palladium annually … about 6% of the world's palladium production in 2015. Producing approximately 744,000 4E ounces per year, Waterberg would be one of the largest platinum group metals mine complexes in South Africa. Please refer to the Independent Technical Report on the Waterberg Project Including Mineral Resource Update and Pre-Feasibility Study dated October 17, 2016 and filed at www.sedar.com for additional information.
JOGMEC has now completed their USD $20 million funding commitment to the project and their interest can be vested in the joint venture company.
R. Michael Jones, CEO of Platinum Group Metals Ltd said, "We are very pleased that the DMR has approved the transfer of the ownership structure to our dedicated joint venture company at this time. The transfer allows us to prepare to file a mining right application and work on specific financing alternatives and strategic transactions. Interest in the Northern Limb and palladium have increased recently."
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 with industry strategic value.
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. Ramp-up plans at Maseve indicate the need for additional working capital as previously announced.
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.
