Name of the Project
Waterberg palladium project.

Location
The Waterberg project is located 85 km north of Mokopane in Limpopo, South Africa.

Project Owner/s
Platinum Group Metals (PTM) owns 50% of the Waterberg Joint Venture (JV), while Impala Platinum (Implats) owns 15%; Hanwa 9.7%; Japan, Oil, Gas & Metals National Corporation (Jogmec) 12%; and Mnombo Wethu Consultants the balance.

These JV partners executed a formal amended purchase and development option agreement with Implats in April 2020, which entails Implats’ funding 100% of an implementation budget and work programme, valued at about R55-million.

Implats still has a few months to decide whether it wants to increase its shareholding in the project to 50.01% and contribute $165-million to the project’s development, including work programme spend. Implats is expected to make a construction decision during the third quarter of this year.

Under the purchase and development option, Implats may elect to increase its stake in the Waterberg JV from 15% to 50.01% by buying an additional 12.195% equity interest from Jogmec for $34.8-million and earning a further 22.8% interest by making a firm commitment to an expenditure of $130-million in development work.

Implats made a strategic investment of $30-million in November 2017 to buy a 15% stake in the project.

Project Description
The definitive feasibility study mine plan envisages production of 4.8-million tonnes of ore a year and 420 000 platinum, palladium rhodium and gold, or 4E, ounces a year in concentrate. The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels, using large underground equipment and conveyors for ore and waste transport, will provide high efficiency.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%.

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million.

Planned Start/End Date
PTM reported in May 2020 that it was possible for production to start in the first quarter of 2024, following decline establishment in the first quarter of 2021. Steady-state production of 420 000 oz/y could be achieved from 2027.

Latest Developments
PTM intends to sell more than 1.1-million common shares of the company to a major beneficial shareholder, Hosken Consolidated Investments (HCI), at $2.18 a share to raise gross proceeds of $2.5-million.

The company plans to use the proceeds of the private placement for its share of predevelopment costs on the Waterberg project for partial debt repayment, and general corporate and working capital purposes.

Closing of the private placement is subject to customary closing conditions, including stock exchange approvals.

The private placement will enable HCI to maintain an interest of more than 31% in the company.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.