JOHANNESBURG (miningweekly.com) – A Japanese State-owned company, the Japan Oil, Gas & Metals National Corporation (JOGMEC), plans to earn a 35% stake in a South African platinum project for $10-million.

TSX- and NYSE-listed platinum hopeful Platinum Group Metals (PTM) announced on Thursday that it had entered into a $10-million optional funding agreement with the Japanese company for the War Springs project, in Limpopo province.

The funding would be payable over five years, with $500 000 to be committed to the project in the first year, PTM said in a statement.

PTM held a 70% stake in the project, with the Wesizwe Platinum affiliated company Africa Wide Holdings and the empowered Moepi Platinum affiliated Taung Platinum each holding a 15% stake.

“We are pleased to partner with JOGMEC and we hope to expand this relationship over the long term. Our planned exploration at War Springs is part of our overall focus on competitive platinum deposits in any conceivable market,” said PTM CEO Michael Jones.

He added that the company would be exploring at surface and at depth along strike from its current deposit at War Springs.

PTM stated that deep drilling had never been executed at War Springs and this would form part of the programme funded by JOGMEC.

“It is encouraging to see that, despite the current economic climate, exploration and prospecting is continuing, in particular on properties in which Wesizwe has significant shareholding. While from a monetary point of view this deal is neutral to the company, proving up further resources will be value enhancing for Wesizwe and its shareholders,” added Wesizwe CEO Michael Solomon.

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