JSE-listed Impala Platinum (Implats) has asked to have the terms of its purchase and development option in the Waterberg platinum project joint venture (JV) amended.
TSX- and NYSE-listed Platinum Group Metals (PTM) on Thursday announced that Implats had, in consideration for the amendment, agreed to fund 100% of a $4-million implementation budget and work programme that would increase confidence in specific areas of the Waterberg project’s definitive feasibility study (DFS).
Prior to the amendment, Implats would have had to decide by April 17 whether it wanted to exercise its purchase and development option to increase its shareholding in the project to 50.01%.
The end date of Implats’ purchase and development option has now been amended to 90 days following the receipt of an executed mining right for the project.
The JV partners are awaiting the granting of a mining right, as well as environmental authorisation for the project.
The proceeds towards the work programme will be offset against Implats’ future development funding commitment, should it elect to exercise the purchase and development option.
PTM owns 50% of the Waterberg JV, while Implats owns 15%; Hanwa 9.7%; Japan, Oil, Gas & Metals National Corporation (Jogmec) 12%; and Mnombo Wethu Consultants the balance.
If Implats decides to exercise the option, it will acquire Jogmec’s stake in the project and earn a further 22.8% stake by spending $130-million on the project’s development.
The DFS outlines a fully mechanised, shallow, decline access mine capable of producing 420 000 oz/y of platinum, palladium, rhodium and gold over a 45-year mine life.
Implats’ work programme on the DFS will include geotechnical drilling along the planned decline positions as set out in the DFS, as well as a detailed review of critical areas that could affect the implementation schedule and budget to mitigate execution risks.
The sustainability of water supply and a suitable housing strategy will also be progressed further.
The Waterberg JV technical committee and board have approved the work programme that includes the initial work for early 2020.
PTM continues to manage the project, but Implats will direct the new work programme.