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.