VANCOUVER, British Columbia and JOHANNESBURG, South Africa, Nov. 06, 2017 (GLOBE NEWSWIRE) -- Platinum Group
Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platinum Group”, “PTM” or the
“Company”) is pleased to report the closing of the first phase of the transaction involving the Waterberg platinum
group metal (“PGM”) Project (the “Waterberg Project”) announced on October 16, 2017
with Impala Platinum Holdings Ltd. (JSE:IMP) (“Implats”), Japan Oil, Gas and Metals National
Corporation (“JOGMEC”), Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”),
and Waterberg JV Resources Proprietary Ltd. (“Waterberg Resources”). Platinum Group Metals has
received consideration of US$17.2 million from Implats for the sale of an 8.6% interest in the Waterberg Project and JOGMEC has
received US $12.8 million for the sale of a 6.4% interest in the Waterberg Project.
R. Michael Jones, CEO of Platinum Group Metals said, “We are very pleased to close the first phase of this
transaction and to welcome Implats to the Waterberg team. We will immediately get to work on the Definitive Feasibility
Study. Waterberg represents a large-scale PGM resource with an attractive risk profile given its shallow nature, which
facilitates fully mechanized production with the potential for the project to have amongst the lowest operating costs in the PGM
sector. The deposit is dominated by palladium at a time when prices and interest in this essential metal are
increasing.”
Transaction Summary:
- Implats has purchased a 15.0% interest in Waterberg Resources, which holds the Waterberg Project, for US$30.0
million (the “Initial Purchase”);
- Implats has the option to increase its stake in Waterberg Resources (the “Call Option”) to 50.01% through
additional purchases and earn-in arrangements totaling US $166.0 million following the completion of a Definitive
Feasibility Study; and
- Implats has a right of first refusal to smelt and refine Waterberg concentrate.
If Implats exercises its Call Option to advance to a 50.01% interest in Waterberg Resources, JOGMEC will retain
a 5% interest and certain metal marketing rights to final metal related to the project, while Platinum Group would retain a
31.96% direct and indirect interest in Waterberg Resources. The transaction agreements also provide for the transfer of
equity and the issuance of additional equity to one or more broad based black empowerment partners, at fair value. For full
details of the transaction please see the Company’s news release dated October 16, 2017.
The Waterberg Project has a number of highly attractive characteristics and is designed to be a low-cost,
shallow, bulk mineable project with significant scale and growth potential. The participation of Implats, the world’s second
largest platinum producer with fully integrated mine to market operations, represents a significant step in the advancement of
the Waterberg Project towards potential development and production.
The secured lenders to Platinum Group, Sprott Resource Lending Partnership, among other lenders
(“Sprott”), and Liberty Metals & Mining Holdings, LLC (“LMM”), have provided their consent to the
Call Option, which consent is conditional on the satisfaction of certain conditions by the Company. Sprott and LMM have also
agreed to terms and conditions upon completion of which they will provide their consent to the sale of the Maseve Mine to Royal
Bafokeng Platinum Limited (“RBPlat”) (the “Maseve Sale Transaction”) (see news release dated
September 6, 2017).
The Company and RBPlat are in the process of obtaining regulatory approvals and completing the negotiation of
agreements required for the closing of the Maseve Sale Transaction. RBPlat paid a deposit of Rand 41.37 million (US $3.0
million) into escrow on October 9, 2017. The Maseve Mine is on care and maintenance and the Company does not plan any further
investment at Maseve. In the event that the Maseve Sale Transaction did not complete for any reason, the Company would pursue
other expressions of interest to purchase the mine. Based on the Company’s intended sale of the Maseve Mine and the above
facts, the Company has determined that the Maseve Mine is no longer a material property of the Company in the context of National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Impala Platinum Holdings Limited
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 1.53
million ounces of platinum and 3.1 million ounces of PGEs in FY2017. 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 Platinum Group Metals Ltd.
Platinum Group, based in Johannesburg, South Africa and Vancouver, Canada. Platinum Group and its partners
JOGMEC and Mnombo originated the grass-roots exploration that discovered the Waterberg deposit and a new portion of the Bushveld
PGM complex in 2011.
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 seventy percent of the world's primary platinum
production.
Qualified Person
R. Michael Jones, P.Eng., the Company’s President, Chief Executive Officer and a shareholder of the Company, is
a non-independent qualified person as defined in NI 43-101 and is responsible for preparing 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.
On behalf of the Board of
Platinum 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 Call Option, the Maseve Sale Transaction, potential alternative transactions involving the Maseve Mine and amendments
to the Company’s agreements with its lenders, including the potential to satisfy conditions precedent and consummate all or any
part of such transactions as described herein; changes to black economic empowerment participation in the Waterberg Project; the
anticipated benefits of the Implats transactions and Implats’ participation in the Waterberg Project; the Company’s intended use of
proceeds derived from the Initial Purchase; potential offtake agreements; the Company’s plans for the Waterberg Project and the
Maseve Mine; cost estimates; the Waterberg Project’s scale and growth potential; the advancement of the Waterberg Project towards
potential development and production; the Company’s key objectives; and the Company’s plans and estimates regarding exploration,
studies, development, construction, production, cash flows and other activities and developments. 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; the Company may not obtain
required lender consents on terms favorable to it, or at all; the anticipated benefits of the Initial Purchase and Implats’
participation in the Waterberg Project may not be realized; the Call Option may not be exercised, the Company may be unable to
satisfy the related closing conditions or black economic empowerment dilution may affect the economics thereof; the Company may not
be able to finalize definitive agreements relating to the Maseve Sale Transaction on favorable terms, or at all, satisfy the
related closing conditions and complete such transaction; the Company may be unable to complete an alternative sale of the Maseve
Mine if the Maseve Sale Transaction does not complete; 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 successfully settlement or restructure of debt; 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 relevant transactions and
to otherwise comply with all applicable regulatory requirements; 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.
