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PTM signs offtake agreement with Amplats subsidiary

25th April 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed Platinum Group Metals’ (PTM’s) 74%-owned operating company Maseve Investments has signed a binding life-of-mine concentrate offtake agreement with Anglo American Platinum subsidiary Rustenburg Platinum Mines (RPM) for the Western Bushveld Joint Venture Project 1 mine (Project 1).

Maseve would sell all concentrate from Project 1 to RPM for the life-of-mine, with RPM required to purchase and take delivery of all concentrate.

The agreement, which stipulated that the concentrate be delivered to a smelter in Rustenburg, would come into effect when the initial delivery of concentrate from Project 1 took place, and covered the Merensky and UG2 ores.

It also provided for a certain stipulated quality of concentrate to be maintained and for concentrate to be delivered to other locations in the case of smelter maintenance, as well as allowed for a standard discount to metal payability and customary penalties for unwanted elements.

This announcement followed a tender process for the offtake and the exercise of a right of first refusal by RPM.

“This is an important material contract for Project 1 and it is fitting that we have concluded this contract as we start our surface stockpile of Merensky ore for the mill and concentrator, planned for start-up at the end of 2014,” said PTM CEO and president R Michael Jones.

The development of two twin sets of declines to access the Merensky reef and the construction of mine facilities were continuing at Project 1.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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