JOHANNESBURG (miningweekly.com) – TSX-listed Platinum Group Metals (PTM) on Thursday said its main focus in the year ahead would be on advancing its large-scale, bulk mineable Waterberg project, in South Africa, after agreeing to sell its position in the Maseve mine to Royal Bafokeng Platinum.
The miner said it would also focus on repaying its secured lenders, using the $74-million proceeds from the sale. This would leave the company with $104-million in debt.
Recently, Impala Platinum Holdings (Implats) also bought a 15% stake in the Waterberg project from PTM and the Japan Oil, Gas and Metals National Corporation, worth $30-million.
As part of restructuring arrangements agreed with its secured lenders, PTM must raise $20-million in subordinated debt and equity within 30 days of the first lien loan facility of $40-million being repaid from the proceeds of the Maseve sale, and raise a further $10-million in subordinated debt and/or equity before June 30, 2018.
The company has set aside $5-million from the Implats proceeds toward its share of definitive feasibility study costs, including drilling.
The Waterberg project has the potential to be a low-cost platinum and palladium producer based on a fully mechanised mine plan. The deposit is dominated by palladium.
The joint venture partners plan to file a mining right application in 2018.