Mining Right Application for Waterberg PGM Project Accepted
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
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News Release No. 18-380
October 10, 2018
Mining Right Application for Waterberg PGM Project Accepted
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” “PTM” or the “Company”) is pleased to announce that the recently filed
Mining Right Application (Press Release September 4, 2018) for the large-scale Waterberg
PGM Project has been accepted by South Africa’s Department of Mineral Resources (“DMR”).
The application consists of a Mining Work Program, Social and Labour Plan and associated
Environmental Applications. The application is supported by the Company and all of the
Waterberg JV partners including Impala Platinum Holdings Ltd. (“Implats”), Japan Oil, Gas
and Metals National Corporation (“JOGMEC”) and Mnombo Wethu Consultants (Pty) Ltd.
(“Mnombo”). The process of consultation under the Mineral and Petroleum Resources
Development Act, 2002 ("MPRDA") and the Environmental Assessment regulations, for
consideration of the application has commenced.
Waterberg represents a large-scale resource of platinum group metals (“PGM”), including
palladium, platinum and gold, with an attractive risk profile. Given its shallow nature and
ability to support a fully mechanized operation, the Waterberg Project has the potential to
be amongst the lowest cost producers in the PGM sector. A pre-feasibility study (“PFS”)
was completed in 2016 and a definitive feasibility study (“DFS”) is in progress for completion
in calendar Q1 2019. The DFS is considering two options including the 600,000 tonne per
month mine plan outlined in the PFS and a phased approach commencing with a smaller,
250,000 to 350,000 tonne per month production profile. Stantec Consulting International
LLC and DRA Projects SA (Proprietary) Limited are the lead independent project engineers
for the DFS.
Platinum Group currently holds an effective 50.02% interest in the Waterberg Project.
Implats, the world’s second largest platinum producer, owns a 15% interest. Mnombo, a
black empowerment company, holds a 26% interest. The Company owns a 49.9% interest
in Mnombo. JOGMEC holds a 21.95% interest in the Waterberg Project and is in the process
of transferring a 9.755% interest to Japanese conglomerate Hanwa Co., Ltd. Hosken
Consolidated Investments Limited, a South African black empowerment investment holding
company listed on the JSE with a US$1.1 billion market capitalization, owns a 15% stake in
Platinum Group. Implats is an active participant in the joint venture and holds an option to
increase their stake to 50.01% following the completion of the DFS.
Implats has identified Waterberg as a potential low-cost alternative to deep conventional
PGM mining, with an attractive metal balance for the future. Palladium has been gaining
market interest based on continued strong demand from the auto sector, where there is a
growing trend towards gasoline engines and hybrids that use palladium dominant catalysts.
PLATINUM GROUP METALS LTD. …2
About Platinum Group Metals Ltd.
Platinum Group is focused on, and is the operator of, the Waterberg Project, a bulk mineable
underground deposit in northern South Africa. Waterberg was discovered by the Company.
Waterberg has potential to be a low cost dominantly palladium mine and Implats recently
made a strategic investment in the Waterberg Project.
On behalf of the Board of
Platinum Group Metals Ltd.
R. Michael Jones
President, CEO and Director
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 LLC 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”). Forward-looking statements are typically identified
by 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 forwa rd-looking statements. Forward-looking
statements in this press release include, without limitation, JOGMEC’s potential transfer of a
portion of its interest in the Waterberg Project to Hanwa; the potential for Implats to exercise
its rights and fund addi tional development work on the Waterberg Project; the timing and
completion of a DFS; the granting of a mining right for the Waterberg Project by the DMR; the
Waterberg Project’s potential to be a large scale, bulk mineable, fully mechanized, low -cost
dominantly palladium mine. Although the Company believes the 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 forward -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, including additional financ ing requirements; the
Company’s history of losses; the Company’s inability to generate sufficient cash flow or raise
sufficient additional capital to make payment on its indebtedness, and to comply with the terms
of such indebtedness; the LMM Facility is, and any new indebtedness may be, secured and the
Company has pledged its shares of PTM RSA, and PTM RSA has pledged its shares of Waterberg
JV Resources (Pty) Limited (“ Waterberg JV Co.”) to Liberty Metals & Mining Holdings, LLC, a
subsidiary of LMM, under the LMM Facility, which potentially could result in the loss of the
Company’s interest in PTM RSA and the Waterberg Project in the event of a default under the
LMM Facility or any new secured indebtedness; the Company’s negative cash flow; the
Company’s ability to continue as a going concern; completion of the definitive feasibility study
for the Waterberg Project, which is subject to resource upgrade and economic analysis
requirements; uncertainty of estimated production, development plans and cost estima tes for
PLATINUM GROUP METALS LTD. …3
the Waterberg Project; discrepancies between actual and estimated Mineral Reserves and
Mineral Resources, between actual and estimated development and operating costs, between
actual and estimated metallurgical recoveries and between estimated and actual production;
fluctuations in the relative values of the U.S. Dollar, the Rand and the Canadian Dollar; volatility
in metals prices; the failure of the Company or the other shareholders to fund their pro rata
share of funding obligations for the Waterberg Project; any disputes or disagreements with the
other shareholders of Waterberg JV Co. or Mnombo Wethu Consultants (Pty) Ltd; the ability of
the Company to retain its key management employees and skilled and experienced personnel;
contractor performance and delivery of services, changes in contractors or their scope of work
or any disputes with contractors; conflicts of interest ; capital requirements may exceed its
current expectations; the uncertainty of cost, operational and economic projections; the ability
of the Company to negotiate and complete future funding transactions and either settle or
restructure its debt as required; litigation or other administrative proceedings brought against
the Company; actual or alleged breaches of governance processes or instances of fraud, bribery
or corruption; exploration, development and mining risks and the inherently dangerous nature
of the mining industry, and the risk of inadequate insurance or inability to obtain insurance to
cover these risks and other risks and uncertainties; property and mineral title risks including
defective title to mineral claims or property; changes in nationa l and local government
legislation, taxation, controls, regulations and political or economic developments in Canada and
South Africa; equipment shortages and the ability of the Company to acquire necessary access
rights and infrastructure for its mineral properties; environmental regulations and the ability to
obtain and maintain necessary permits, including environmental authorizations and water use
licences; extreme competition in the mineral exploration industry; delays in obtaining, or a
failure to obtain, permits necessary for current or future operations or failures to comply with
the terms of such permits; risks of doing business in South Africa, including but not limited to,
labour, economic and political instability and potential changes to and fai lures to comply with
legislation; and other risk factors described in the Company’s most recent Form 20 -F annual
report, annual information form and other filings with the U.S. Securities and Exchange
Commission (“SEC”) and Canadian securities regulators, which may be viewed at www.sec.gov
and www.sedar.com, respectively. Proposed changes in the mineral law in South Africa if
implemented as proposed would have a material adverse effect on the Company’s business and
potential interest in projects. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward- looking statement, whether as a result
of new information, future events or results or otherwise.
Estimates of mineralization and other technical information included or referred to 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 Mineral Reserves used
in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7
standards, a “final” or “bankable” feasibility study is required to report Mineral Reserves, the
three-year historical average price is used in any Mineral Reserve or cash flow analysis to
designate Mineral Reserves 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 “ Mineral Reserves” under SEC standards. 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 normally are not permitted to be used in reports and registration
statements filed with the SEC. 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,
descriptions 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 United States federal securities laws and the rules and regulations thereunder.
PLATINUM GROUP METALS LTD. …4