JOHANNESBURG (miningweekly.com) – South Africa’s Department of Mineral Resources (DMR) has approved the transfer of all TSX- and NYSE-listed Platinum Group Metals’ (PTM’s) Waterberg prospecting rights to a dedicated joint venture (JV) corporation, Waterberg JV Resources.
Platinum Group Metals RSA, which is 100% owned by PTM, holds a 45.65% direct interest in the Waterberg project, which is located on the northern limb of the Bushveld Complex. The Japan Oil, Gas and Metals National Corporation (Jogmec) holds a 28.35% direct interest in the project and black economic empowerment partner Mnombo Wethu Consultants a direct 26% interest.
PTM currently also owns a 49% interest in Mnombo.
“We are very pleased that the DMR has approved the transfer of the ownership structure to our dedicated JV company at this time. The transfer allows us to prepare to file a mining right application and work on specific financing alternatives and strategic transactions,” commented PTM CEO R Michael Jones.
PTM said multiple parties in South Africa and internationally had shown an interest in the Waterberg project, with discussions ongoing.
“Interest in the project is driven by the strategic nature of the Waterberg deposit as one of the only significant primary platinum and palladium assets globally with a thick, low-cost, fully mechanised mine plan. The deposit is in contrast to narrow, high-cost, deep-level platinum mining.
“The company regards Waterberg as an important core asset with industry strategic value,” the company noted.
It added that Jogmec had also completed a $20-million funding commitment to the project.