JOHANNESBURG (miningweekly.com) − Canadian junior Platinum Group Metals (PTM) on Thursday deposited R408-million into an escrow account to secure an additional stake from Wesizwe in Project 1, near Rustenburg.

Following a deal with Anglo Platinum subsidiary Rustenburg Platinum Mine in April, Wesizwe assumed full ownership of its flagship Frischgewaagd-Ledig project, while retaining a 45,25% interest in the adjacent Projects 1 and 3 of Maseve Investments.

The transaction granted PTM the option, within a stipulated time period, to enhance its stake to 74% through an injection of capital into Maseve on behalf of Wesizwe, whose interest would thus be diluted to 26%.

PTM had now exercised that option, securing an additional 19,25% in Project 1. The money in the escrow account, which is held by Masseve, would be used to fund Wesizwe’s 26% contribution to the project’s development.

Newly-appointed Wesizwe CEO Arthur Mashiatshidi said that the company hoped that the clarified ownership structure would ensure that the market attributed the appropriate value from the project to Wesizwe.

Project 1 shares boundaries with Wesizwe’s Frischgewaagd-Ledig project and with Royal Bafokeng Platinum’s Styldrift project and the Bafokeng Rasimone mine.

In December, PTM announced an initial construction budget of $100- million for the Project 1, and work on the planning of the surface infrastructure and underground mine development had now started.

The miner now held rights for up to 74% of the 8,2-million four element (4E) ounces, which comprised platinum, palladium, rhodium and gold, in the measured and indicated categories in Project 1, as well as 1,9-million 4E ounces in the inferred category at project 3.
 

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