TSX- and NYSE-listed Platinum Group Metals (PTM) expects its Waterberg joint venture (JV) partners to approve the project’s definitive feasibility study (DFS) next month, while approval of a mining right is also pending.
PTM says the positive results of the Waterberg DFS provide a solid base for the assessment of the project’s value.
After the DFS is approved, JV partner Impala Platinum (Implats) may elect to exercise a purchase and development option to increase its stake in the Waterberg JV company from 15% to 50.01% by buying an additional 12% of equity.
The 12% equity may be bought from JV partner Japan Oil, Gas and Metals National Corporation (Jogmec) for $34.8-million, while a further 22.8% interest can be earned by making a firm commitment to spend $130-million on the project’s development.
PTM holds 50% of the Waterberg JV, while Implats owns 15%, Hanwa 9.7% and Jogmec 12.1%. The balance is held by empowerment partner Mnombo Wethu Consultants.
The Waterberg project is located on the northern limb of the Bushveld Complex, in South Africa.
The DFS states that the project can be developed as a fully mechanised, shallow, decline accessed mine, producing 420 000 oz a year of palladium, platinum, rhodium and gold for 45 years.