Dual-listed Platinum Group Metals (PTM) says the shareholders of Waterberg JV Resources have executed a formal amended purchase and development option agreement with Impala Platinum (Implats).
In consideration for the amendment, first announced on February 27, Implats is funding 100% of a new implementation budget and work programme, effective February 1.
The work programme, as approved by the Waterberg JV Company, is aimed at increasing confidence in specific areas of the Waterberg definitive feasibility study, while awaiting the expected grant of a mining right and environmental authorisation.
The work programme is estimated to cost about R55-million.
The work programme is being carried out remotely and in compliance with current South African health-related stay-at-home restrictions brought on by the Covid-19 pandemic.
The termination date of Implats' purchase and development option was amended from the original date of April 17, to 90 calendar days following receipt of an executed mining right for Waterberg.
All other terms of the purchase and development option remain unchanged.
Amounts spent by Implats for the work programme will be offset against Implats' future development funding commitment should it elect to exercise the purchase and development option.
The previous guidance for the grant of the mining right in the second quarter of this year may be delayed by the current South African stay-at-home restrictions.
PTM will continue to manage Waterberg, as directed by the technical committee of Waterberg JV Company.
A majority of the company's South African personnel are engaged to complete the work programme, which is being directed by Implats' technical personnel.
PTM is the operator of Waterberg, a bulk underground palladium and platinum deposit located in South Africa.
Waterberg was discovered by Platinum Group and is being jointly developed with Implats, Jogmec, Mnombo Wethu Consultants and Hanwa.