JOHANNESBURG (miningweekly.com) – Toronto- and New York-listed Platinum Group Metals this week reported that Implats had given formal notice that, owing to unprecedented events brought about by the Covid-19 pandemic, it would not be exercising its purchase and earn option into a 50.01% interest in the Waterberg platinum project.

Platinum Group Metals stated in a media release that the unprecedented events had necessitated Implats to re-evaluate the impact of the increased economic uncertainty on its strategy and risk appetite and that the withdrawal decision had been taken notwithstanding the positive progress achieved to date, as well as the strategic alignment between the Waterberg asset and the portfolio objectives of Implats.

Platinum Group Metals stated that its ‘call period program’ would continue to be funded by Implats to completion in August and that discussions on potential smelter offtake arrangements for the project would continue.

It its release to Mining Weekly, Platinum Group Metals stated that Implats, as 15% shareholder in the Waterberg JV joint venture company, had reiterated its support of the Waterberg project and had planned to remain an active participant, including funding of its share of costs, subject to future considerations. It added that Implats would not receive credit at the joint venture level for the funded R55-million budget, as set out in the joint venture agreements.

Platinum Group Metals holds a 50.2% interest in Waterberg JV directly and indirectly and is the manager of the project.

Under the joint venture agreements, Implats had until 90 days after the grant of a mining right to decide on its option.

Interest in the Waterberg project for funding and strategic offtake had been recently received from other interested parties and discussions with these parties would continue while the ‘call period program’ and mining right application work were ongoing.

The nonbrokered private placement announced on June 2 had been postponed, Platinum Group Metals stated.

As reported by Mining Weekly, the private placement was to raise $2-million, through the sale of about 1.4-million shares at $1.40 a share. An existing major shareholder of the company, Hosken Consolidated Investments, was expected to participate in the private placement.

The Waterberg Project is a bulk underground palladium, platinum, gold and rhodium project.  An independent definitive feasibility study for it was approved in December. Shareholders of Waterberg JV include Japan Oil, Gas and Metals National Corporation, Hanwa and Mnombo Wethu Consultants.