Platinum Group Metals Ltd. (TSX:PTM) (NYSE
American:PLG) (“Platinum Group” or the “Company”) is pleased to
announce that on March 8, 2018, Japan Oil, Gas and Metals National
Corporation (“JOGMEC”) and Hanwa Co., Ltd. (“Hanwa”) signed a
memorandum of understanding to transfer part of JOGMEC’s interest
in the Waterberg Palladium, Platinum, Gold, Rhodium (“PGM”) and
Copper, Nickel Project, located in the Bushveld Complex of the
Republic of South Africa. The agreement is based on the result of a
public tender held on February 23, 2018. The winner of the bidding
was Hanwa, and JOGMEC will now start negotiation on the terms of
the transfer with Hanwa. With a successful negotiation, Hanwa
will secure the right to a supply of refined platinum group metals
for exhaust emission catalytic converters, fuel cells for cars, and
nickel and other metals for rechargeable batteries. This
transaction will enable a potential significant stable supply of
metals to Japanese industries. Hanwa is a leading global trading
company headquartered in Tokyo Japan with over 3,000 employees and
operations spanning steel, non-ferrous metals, metals and alloys,
food, petroleum, chemicals, machinery, lumber and many other
business sectors.
Impala Platinum Holdings Ltd. (“Implats”)
recently paid $30M USD for a 15% interest in the Waterberg Project
including a right of first refusal for concentrate offtake. Implats
also acquired an option for a $166M USD acquisition and development
commitment to earn a 50.01% controlling interest upon completion of
the Definitive Feasibility Study (DFS). Platinum Group holds a
50.02% direct and indirect interest. The Waterberg DFS is expected
to be completed in calendar H1 2019.
JOGMEC currently holds a 21.95% interest in the
Waterberg Project and is planning to transfer a 9.755% interest to
Hanwa. Upon completion of the transfer Hanwa will also acquire
JOGMEC’s right of first refusal to certain metal produced by
Implats from the Waterberg Project.
Current Platinum Group Element (“PGE”) probable
reserves at the Waterberg Project (100%) are 12.3 million ounces,
consisting of 61% palladium, 30% platinum, 8% gold and 1% rhodium
plus 191 million and 333 million pounds of copper and nickel
respectively. At a 2.5 gram per tonne (“g/t”) cut-off grade,
probable reserves are comprised of 102.7 million tonnes at 3.73 4E
g/t, consisting of 2.29 g/t Pd, 1.11 g/t Pt, 0.29 g/t Au, 0.04 g/t
Rh, 0.08% Cu and 0.15%Ni. (See the technical report dated October
19, 2016 and filed on SEDAR titled “Independent Technical Report on
the Waterberg Project Including Mineral Resource Update and
Pre-Feasibility Study”.) Project reserves will be updated as part
of the DFS. Much of the Waterberg Project area remains to be
drilled and assessed. The Waterberg deposit remains open down
dip and along strike.
R. Michael Jones CEO of Platinum Group Metals
said, “We are very pleased to welcome Hanwa, a strong Japanese
diversified company to the Waterberg Joint Venture. Hanwa’s
experience in the global metals and industrial complex adds another
dimension to our Joint Venture. We acknowledge that JOGMEC is
satisfying its mandate and is following its stated desire to secure
critical mineral supplies to Japanese companies and industry. The
participation of Hanwa along with JOGMEC and Implats confirms the
importance of the Waterberg Project.”
About Hanwa
Hanwa is a Japanese trading company which
supplies a broad spectrum of products, including steel, non-ferrous
metals, metals and alloys, food, petroleum, chemicals, machinery,
lumber and many other items, to an equally diverse range of
customers. The company has solid positions in all of these
businesses. As a trading company that performs many important
roles, Hanwa will continue to enter more business fields in
response to changes in the operating environment in order to meet
the needs of customers.
About Impala Platinum
Impala Platinum Holdings Limited is one of the
world’s foremost fully integrated producers of platinum and
associated PGEs. The group produces approximately a quarter of the
world's supply of primary platinum. Implats produced 1.44 million
ounces of platinum and 2.91 million ounces of PGEs in FY2016.
Implats’ operations are located on the Bushveld Complex in South
Africa and the Great Dyke in Zimbabwe, the two most significant
PGE-bearing ore bodies in the world. In Southern Africa Implats is
structured around five main operations namely Impala, Zimplats,
Marula, Mimosa and Two Rivers with headquarters based in
Johannesburg, South Africa.
About JOGMEC
Japan Oil, Gas and Metals National Corporation
(JOGMEC), an incorporated administrative agency established by the
Japanese government, plays a key role in ensuring a constant and
stable supply of oil, natural gas, coal, geothermal energy and
mineral resources to support industries and citizens in Japan
through a wide range of activities relating these resources.
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.
Qualified Person
Scientific and technical information in this
press release related to mineral reserves and resources and other
information has been reviewed and approved by R. Michael Jones,
P.Eng., a non-independent Qualified Person and the CEO of the
Company. He has verified the technical information for disclosure
in this press release by reviewing the work of experienced Company
geologists, consulting geologists and engineers and by visiting the
site and reviewing the ongoing project database.
On behalf of the Board of
Platinum Group Metals Ltd.
R. Michael Jones President, CEO and Director
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
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”), including
statements regarding the potential transfer of an interest in, and
right of first refusal relating to, the Waterberg Project from
JOGMEC to Hanwa; future drilling; the projections in the Waterberg
pre-feasibility study; the completion and contents of the Waterberg
DFS; the potential exercise of Implats’ option; and the potential
development and cost structure of, and production from, the
Waterberg Project. 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. 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 any
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 that the
completion of the described transfer from JOGMEC to Hanwa is
uncertain, and the risk factors described in the Company’s Form
20-F annual report, annual information form and other filings with
the Securities and Exchange Commission (“SEC”) and Canadian
securities regulators, which may be viewed at www.sec.gov and
www.sedar.com, respectively.
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 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 or the documents referred to 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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