Platinum Group Metals Ltd. Executes Binding Legal Agreements for Sale of Maseve Mine
November 23 2017 - 8:44AM
Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platinum
Group” “PTM” or the “Company”) announces the completion of due
diligence and the execution of binding legal agreements 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. The Company
first reported the details of this transaction in a news release
dated September 6, 2017. The proceeds of the Maseve sale will
be used to pay down a substantial portion of the Company’s
debt.
RBPlat is to pay Maseve an initial US$58.0
million in cash to acquire the concentrator plant and certain
surface assets of the Maseve Mine. A deposit in escrow was
paid by RBPlat in the amount of ZAR 41,367,300 (US$3.0 Million
equivalent) on October 9, 2017. Closing of this first step is
subject to certain conditions, including RBPlat shareholder
approval at a meeting scheduled for November 30, 2017 and the
approval of the South African Competition Commission. Closing
of the second step, to acquire 100% of the issued equity in Maseve
by way of a scheme of arrangement for US$4 million in cash and
approximately US$12 million in RBPlat ordinary shares, is
conditional upon the first step described above being completed,
and is subject to certain requirements, including the approval of
the South African Department of Mineral Resources and the approval,
or confirmed obligation, of Maseve’s 17.1% minority
shareholder.
Looking forward the Company plans to focus on
its large-scale Waterberg project, a palladium dominant development
asset where the Company has established mineral reserves and
resources. The Company recently sold an 8.6% interest in Waterberg
to Impala Platinum Holdings Ltd. for US$17.2 million as part of a
transaction where Impala bought an aggregate 15% interest in
Waterberg for US$30.0 million.
About Platinum Group Metals
Ltd.
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. Platinum Group is partnered at
Waterberg with the Japan Oil, Gas and Metals National Corporation,
Impala Platinum Holdings Ltd. and Mnombo Wethu Consultants
(Pty) Ltd., an empowerment partner.
“R. Michael Jones”
On behalf of the Board ofPlatinum Group
Metals Ltd.
For further information
contact: R.
Michael Jones,
President or
Kris Begic, VP, Corporate
Development
Platinum Group Metals Ltd.,
Vancouver
Tel: (604) 899-5450 / Toll Free: (866)
899-5450
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange and the NYSE American
LLC have not reviewed and do not accept responsibility for the
accuracy or adequacy of this news release, which has been prepared
by management.
This press release contains forward-looking
information within the meaning of Canadian securities laws and
forward-looking statements within the meaning of U.S. securities
laws (collectively “forward-looking statements”). Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, plans, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. All statements that are not statements of historical fact
are forward-looking statements. Forward-looking statements in this
press release include, without limitation, statements regarding the
receipt and timing of required government approvals, satisfaction
of other conditions precedent and consummation of the Maseve Sale
Transaction as described herein; the Company’s intended use of
proceeds derived from the Maseve Sale Transaction; and the
Company’s plans following the Maseve Sale Transaction. Statements
of mineral resources and mineral reserves also constitute
forward-looking statements to the extent they represent estimates
of mineralization that will be encountered on a property and/or
estimates regarding future costs, revenues and other matters.
Although the Company believes the forward-looking statements in
this press release are reasonable, it can give no assurance that
the expectations and assumptions in such statements will prove to
be correct. The Company cautions investors that any forward-looking
statements by the Company are not guarantees of future results or
performance and that actual results may differ materially from
those in forward-looking statements as a result of various factors,
including risks related to indebtedness; risks related to the
nature of the Maseve Sale Transaction and the uncertainty as to
whether the Company can successfully obtain required government
approvals, satisfy other closing conditions and consummate the
Maseve Sale Transaction; potential delays in the foregoing; the
Company’s capital requirements may exceed its current expectations;
the uncertainty of cost, operational and economic projections; the
ability of the Company to negotiate and complete future funding
transactions and either settle or restructure its debt as required;
variations in market conditions; the nature, quality and quantity
of any mineral deposits that may be located; metal prices; other
prices and costs; currency exchange rates; the Company’s ability to
obtain any necessary permits, consents or authorizations required
for its activities and to effect the Maseve Sale Transaction; the
Company’s ability to produce minerals from its properties
successfully or profitably, to continue its projected growth, or to
be fully able to implement its business strategies; risks related
to contractor performance and labor disruptions; and other risk
factors described in the Company’s Form 40-F annual report, annual
information form and other filings with the Securities and Exchange
Commission and Canadian securities regulators, which may be viewed
at www.sec.gov and www.sedar.com, respectively. Proposed changes in
the mineral law in South Africa if implemented as proposed would
have a material adverse effect on the Company business and
potential interest in projects.
Cautionary Note to U.S. and other Investors
Estimates of mineralization and other technical
information included or referenced in this press release have been
prepared in accordance with NI 43-101. The definitions of proven
and probable reserves used in NI 43-101 differ from the definitions
in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a
"final" or "bankable" feasibility study is required to report
reserves, the three-year historical average price is used in any
reserve or cash-flow analysis to designate reserves and the primary
environmental analysis or the report must be filed with the
appropriate governmental authority. As a result, the reserves
reported by the Company in accordance with NI 43-101 may not
qualify as "reserves" under SEC standards. In addition, the terms
"mineral resource", "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource" are defined in and
required to be disclosed by NI 43-101; however, these terms are not
defined terms under SEC Industry Guide 7 and normally are not
permitted to be used in reports and registration statements filed
with the SEC. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves; "inferred mineral
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Additionally,
disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian securities laws; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measurements. Accordingly,
information contained or referenced in this press release
containing descriptions of the Company's mineral deposits may not
be comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of United
States federal securities laws and the rules and regulations
thereunder.
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