South African Competition Tribunal Approves Maseve Mine Sale Transaction
January 17 2018 - 2:00AM
Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG)
(“Platinum Group” “PTM” or the “Company”) reports that on January
16, 2018, the South African Competition Tribunal approved
the transaction announced earlier whereby Royal Bafokeng
Platinum Limited (“RBPlat”) will acquire a 100% equity interest in
Maseve Investments 11 (Pty) Ltd. (“Maseve”). The approval is
subject to certain conditions, agreed to by RBPlats, focused on
jobs in the transition of ownership. Competition Tribunal
approval is a key step forward in the planned transaction.
The Company and RBPlat executed definitive
agreements on November 23, 2017 to sell all of the rights and
interests in Maseve in a transaction valued at approximately
US$74.0 million (the “Maseve Sale Transaction”)1. RBPlat is
to first acquire the concentrator plant and certain surface assets
of the Maseve Mine for payment of US$58 million in cash to Maseve
(“Step 1”), conditional on certain approvals and
conditions precedent. Step 1 is expected to close in February
2018. RBPlat is next (“Step 2”) to acquire 100% of the shares
in Maseve and all shareholder loans owed by Maseve for an aggregate
consideration equal to US$16.0 million.
The parties continue to work together in
fulfilment of the remaining conditions precedent. Step 2 of
the transaction will require the approval of the Department of
Mineral Resources and other conditions precedent, which are
expected to be completed in mid-2018. PTM’s proceeds from the
Maseve Sale Transaction are to be used to repay the Company’s
secured lenders.
About Platinum Group Metals
Ltd.
Platinum Group is focused on, and is the
operator of, the Waterberg Project, a bulk mineable underground
deposit in northern South Africa. Waterberg was discovered by the
Company. Waterberg has potential to be a low cost dominantly
palladium mine and Impala Platinum recently made a strategic
investment in the Waterberg Project.
“R. Michael Jones”
On behalf of the Board of
Platinum Group Metals Ltd.
1 For more details please refer to the Financial Statements and
Management’s Discussion and Analysis for the three months ended
November 30, 2017, the Company’s Annual Report on Form 20-F and the
Company’s Annual Information Form for the year ended August 31,
2017.
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, the receipt and timing
of required government approvals, satisfaction of other conditions
precedent and consummation of Step 1 and Step 2 to the Maseve Sale
Transaction as described herein; the Company’s intended use of
proceeds derived from the Maseve Sale Transaction; repayment of,
and compliance with the terms of, indebtedness; and the Waterberg
Project’s potential to be a low-cost platinum and palladium
producer. 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 all
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 most recent annual report, annual information form and
other filings with the U.S. Securities and Exchange Commission
(“SEC”) 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.
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