Hanwa Co. Ltd. Completes Acquisition of 9.755% Interest in Waterberg Palladium Project from JOGMEC Including Metal Marketing Rights
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 19-391
March 7, 2019
Hanwa Co. Ltd. Completes Acquisition of 9.755% Interest in
Waterberg Palladium Project from JOGMEC Including Metal
Marketing Rights
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group ” “PTM” or the “ Company”) reports that the previously announced
transaction between the Japan, Oil, Gas and Metals National Corporation (“JOGMEC”) and
Hanwa Co. Ltd. (“Hanwa”) has been completed.
In February 2018, JOGMEC held a public tender to transfer 9.755% of JOGMEC’s 21.95%
interest in the Waterberg Project . Hanwa successfully won the bi d, whereupon Hanwa and
JOGMEC started the process required to complete and finalize the transfer. On Octobe r 24,
2018 Hanwa and JOGMEC officially entered into a transfer agreement. Upon the recent grant
of approval from the government of the Republic of South Africa, the entire transfer procedure
has been completed. JOGMEC will continue to be an active joint venture partner and will also
continue the promotion of Japanese interests globally through mineral exploration and
providing vital information on mineral resources.
Under the terms of the transaction Hanwa has also acquired the marketing right to solely
purchase all the metals produced from the Waterberg Project at market prices . The
transaction secures a key future source of platinum group metals (“PGM”) and nickel used
for automobile catalytic converters, fuel cells and secondary batteries for industries in Japan.
The current measured and indicated mineral resource of the Waterberg deposit stands at
26.34 million ounces 4E (242Mt with an average grade of 3.38 g/t 4E -platinum, palladium,
rhodium and gold)*. The deposit is amenable to fully mechanized mining with production
costs estimated to be the lowest of PGM mines in South Africa. The deposit is also
advantageous because of the highest palladium content (63.04%) amongst South African
PGM mines. The mineral reserves and resources will be updated as part of the definitive
feasibility study in p rocess. Palladium prices have outperformed recently due to strong
demand from autocat alyst manufacturers and a limited supply response capability from
traditional producers in Russia and South Africa. Industry analysts expect deficits to continue.
Following the Hanwa transfer Platinum Group continues to hold a 50.02% effective interest in
Waterberg JV Co., JOGMEC now holds a 12.195% interest, Impala Platinum Holdings Ltd.
(“Implats”) holds a 15% interest, Hanwa holds a 9.755% interest and empowerment partner
Mnombo Wethu Consultants (Pty) Ltd. hold s the effective balance of the joint venture. JSE
listed, broad based empowerment group, Hosken Consolidated Investments Limited (“HCI”)
has recently acquired a 19.90% ownership interest in Platinum Group Metals Ltd.
PLATINUM GROUP METALS LTD. …2
Implats made a strategic investment of US $30.0 million in November 2017 to purchase their
15% stake in the Waterberg Project. Implats acquired an option to increase its stake to
50.01% by additional share purchases from JOGMEC for an amount of US $34.8 million and
a commitment to expenditures of US $130 million for development work on the Waterberg
Project and to arrange project financing. Implats also acquired a right of first refusal to smelt
and refine Waterberg Project concentrate. The Implats option is exercisable within 90 days of
completion of the Waterberg definitive feasibility study which is currently in the final stages
of completion.
*Measured and Indicated Mineral Resource totaling 26.34 million 4E ounces is comprised of
63.04% palladium, 29.16% platinum, 6.37% gold and 1.43% rhodium (242.5 Million Tonnes
at 3.38 g/t 4E) at a 2.5 g/t 4E cut-off grade on a 100% project basis.
About Hanwa
Hanwa is a Japanese trading company which supplies a broad spectrum of products, including
steel, non-ferrous metals, metals and alloys, food, petroleum, chemicals, machinery, lumber
and many other items, to an equally diverse range of customers. The company has sol id
positions in all of these businesses. As a trading company that performs many important
roles, Hanwa will continue to enter more business fields in response to changes in the
operating environment in order to meet the needs of customers.
About Implats
Impala Platinum Holdings Limited is one of the world’s foremost fully integrated producers of
platinum and associated PGEs. The group produces approximately a quarter of the world's
supply of primary platinum. Implats’ operations are located on the Bushveld Complex in South
Africa and the Great Dyke in Zimbabwe, the two most significant PGE -bearing ore bodies in
the world. In Southern Africa Implats is structured around five main operations namely
Impala, Zimplats, Marula, Mimosa and Two Rivers with headquarters based in Johannesburg,
South Africa.
About JOGMEC
Japan Oil, Gas and Metals National Corporation (JOGMEC), an incorporated administrative
agency established by the Japanese government, plays a key role in ensuring a constant and
stable supply of oil , natural gas, coal, geothermal energy and mineral resources to support
industries and citizens in Japan through a wide range of activities relating these resources
About Platinum Group Metals Ltd.
Platinum Group is focused on, and is the operator of, the Waterberg Project, a bulk mineable
underground palladium deposit in northern South Africa. Waterberg was discovered by the
Company. Waterberg has potential to be a low cost dominantly palladium mine and Implats,
a smelter and refiner of platinum group metals, recently made a strategic investment in the
Waterberg Project.
On behalf of the Board of
Platinum Group Metals Ltd.
PLATINUM GROUP METALS LTD. …3
“R. Michael Jones”
President and CEO
For further information contact:
R. Michael Jones, President
or Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange and the NYSE American have not reviewed and do not accept
responsibility for the accuracy or adequacy of this news release, which has been prepared by
management.
This press release contains forward-looking information within the meaning of Canadian securities
laws and forward -looking statements within the meaning of U.S. securities laws (collectively
“forward-looking statements”), including statements regarding the projections in the Waterberg
pre-feasibility study; the completion and contents of the Waterberg definitive feasibility study; the
potential exercise of Implats’ option; and the potential development and cost structure of, and
production from, the Waterberg Project. Forward -looking statements are typically identified b y
words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar
expressions, or are those, which, by their nature, refer to future events. All statements that are
not statements of historical fact are forward-looking statements. Statements of mineral resources
and mineral reserves also constitute forward -looking statements to the extent they represent
estimates of mineralization that will be encountered on a property and/or estimates regarding
future costs, revenues and other ma tters. Although the Company believes any forward -looking
statements in this press release are reasonable, it can give no assurance that the expectations
and assumptions in such statements will prove to be correct. The Company cautions investors that
any f orward-looking statements by the Company are not guarantees of future results or
performance, and that actual results may differ materially from those in forward -looking
statements as a result of various factors, and the risk factors described in the Compa ny’s Form
20-F annual report, annual information form and other filings with the Securities and Exchange
Commission (“SEC”) and Canadian securities regulators, which may be viewed at www.sec.gov
and www.sedar.com, respectively.
Estimates of mineralization and other technical information included herein have been prepared
in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI
43-101”). The definitions of proven and probable reserves used in NI 43 -101 differ from th e
definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable”
feasibility study is required to report reserves, the three -year historical average price is used in
any reserve or cash flow analysis to designate reserv es and the primary environmental analysis
or report must be filed with the appropriate governmental authority. As a result, the reserves
reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC
Industry Guide 7. In addition, the terms “mineral resource” and “measured mineral resource” are
defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms
under SEC Industry Guide 7 and historically have not been permitted to be used in reports and
registration statements filed with the SEC pursuant to SEC Industry Guide 7 . Mineral resources
that are not mineral reserves do not have demonstrated economic viability. Investors are
cautioned not to assume that any part or all of the mineral deposits in these categories will ever
be converted into reserves. Accordingly, descrip tions of the Company’s mineral deposits in this
press release may not be comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of SEC Industry Guide 7.