Operational and Strategic Process Update
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
P: 604-899-5450
F: 604-484-4710
News Release (Draft) No. 17-350
July 31, 2017
Platinum Group Metals Ltd.
Operational and Strategic Process Update
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA – 31/07/17 --
Platinum Group Metals Ltd. (TSX:PTM) (NYSE:PLG) (“Platinum Group” or the “Company”)
provides a corporate update regarding the previously announced restructuring of the
Maseve Mine, de velopment work at Waterberg and the ongoing strategic alternatives
process.
Maseve Platinum Mine
The Company has successfully changed the operating plan at Maseve and lowered its
cost structure to align with a reduced production ramp up profile. Production guidance
will be provided as operations commence under the new operating plan in the months
ahead.
Contractor terminations and consultations with labour unions have been completed in a
positive climate of mutual respect and in accordance with the South African Labour Act.
All major contracts and union agreements have been settled and agreed promptl y, in-
line with the Company’s budgeted plan. This has allowed for detailed manpower planning
for the new mine plan going forward.
Details of the new mine plan are in final preparation in consultation with the continuing
mining contractor, Redpath South Africa. Changes to the management and supervision
of the mine have also been made with a focus on near term performance.
The Maseve Mine has good potential in terms of grade, underground developed access,
completed infrastructure and a mill that operates in line with design criteria. During the
transition period, restructuring work has focused on improvements to the underground
infrastructure.
Under the new mine plan, a hybrid method will be utilized, consisting of mechanized
primary access development and conventional stoping. The focus will be to achieve
positive cash flow with tight cost control, as soon as possible. As previously announced
the Company is expected to require US$15 million to US$20 million to achieve this
objective. The company is exploring further debt, the sale of assets or equity as methods
of financing.
Waterberg Project
At the Waterberg Project, the Company has completed a detailed shareholders
agreement with JV partners the Japan Oil, Gas and Metals National Corporation
(“JOGMEC”) and Mnombo Wethu Consultants. The Company is awaiting approval by the
PLATINUM GROUP METALS LTD. …2
Department of Mineral Resources for the transfer of the project Prospecting Permits into
the project holding company, Waterberg JV Resources Pty Ltd. The Company plans for
Waterberg JV Resources Pty Ltd to apply for a mining right in 2017. Funding for the
Waterberg Project is currently provided by JOGMEC as part of their earn-in commitment.
Engineering, drilling, hydrological and geological work for a planned Definitive Feasibility
Study for the Waterberg Project is ongoing.
Strategic Alternatives Update
The Company continues to work with BMO Capital Markets and Macquarie Capital to
review and assess strategic alternatives. The Company has received several proposals
and is actively engaged in evaluating a number of specific opportunities at both the asset
and corporate levels.
Several expressions of interest have been received for the Maseve Mine assets. The
Company recognizes the opportunity for significant regional synergies in the Western
Bushveld region. In addition to the execution of its own revised mine plan at Maseve,
the Company is actively exploring possible synergies, sale of assets, joint ventures, direct
investment and custom milling.
The Company has active interest in its Waterberg Project from multiple parties in South
Africa and internationally with discussions ongoing. Interest in Waterberg is driven by
the strategic nature of the Waterberg deposit as one of the only significant primary
platinum and palladium assets globally with a thick, low cost, fully mechanized mine
plan. The deposit is in contrast to narrow, high cost, deep level platinum mining. The
Company regards Waterberg as an important core asset.
About Platinum Group Metals Ltd.
Platinum Group, based in Johannesburg, South Africa and Vancouver, Canada, has a
successful track record with more than 20 years of experience in exploration, mine
discovery, mine construction and mining operations.
Formed in 2002, Platinum Group holds significant mineral rights and large-scale reserves
of platinum and palladium in the Bushveld Igneous Complex of South Africa, which is
host to over 70% of the world's primary platinum production. The Company is currently
focused on ramping up the Maseve Mine, its first near -surface platinum mine, to
commercial production.
Platinum Group has delineated new low -cost, near-surface reserves on the North Limb
of the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk
type of large-scale, shallow low-cost platinum, palladium and gold deposit. Waterberg is
one of the only large-scale dominantly palladium deposits in the world.
Qualified Person
R. Michael Jones, P.Eng., the Company’s President, Chief Executive Officer and a
significant shareholder of the Company, is a non-independent qualified person as defined
in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”)
and is responsible for preparing the technical information contained in this news release.
He has verified the data by reviewing the detailed information of the geological and
engineering staff and the Independent Qualified Person reports as well as visiting the site
regularly.
PLATINUM GROUP METALS LTD. …3
On behalf of the Board of
Platinum Group Metals Ltd.
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 MKT 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 s tatements”). 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 ar e not statements of historical fact are forward -looking statements.
Forward-looking statements in this press release include, without limitation, statements
regarding the commencement of operations under the new operating plan for the Maseve
Mine; particulars in respect of the new mine plan for the Maseve Mine; the amount of
expected additional financing to achieve positive cash flow; the ramp up and potential
achievement of commercial production at the Maseve Mine; anticipated or potential
developments at the Waterberg Project , including drilling and the potential results
thereof, the potential for increasing confidence in mineral resources and upgrading
categories of mineral resources, mine planning, potential water sources, work on the DFS
including engineering and design work to reduce and improve underground development
at Waterberg and to optimize the project scale and return, and the filing of a mining
right; working capital requirements; potential sales of assets, debt or equity; the
Company’s ability to obtain further funding; corporate and asset level strategic
alternatives; the potential economics of the Waterberg Project, if developed; the
Company’s key objectives; and the Company’s plans and estimates regarding
exploration, studies, development, c onstruction, production, cash flows and other
activities and developments. 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 matters. 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 risks
related to indebtedness; the Company’s capital requirements may exceed its current
expectations; the uncertainty of cost, operational and economic projections; the ability
of the Company to negotiate and complet e future funding transactions; variations in
market conditions; the nature, quality and quantity of any mineral deposits that may be
located; metal prices; other prices and costs; currency exchange rates; the Company’s
ability to obtain any necessary permi ts, consents or authorizations required for its
activities; the Company’s ability to produce minerals from its properties successfully or
profitably, to continue its projected growth, or to be fully able to implement its business
PLATINUM GROUP METALS LTD. …4
strategies; risks related to contractor performance and labor disruptions; and other risk
factors described in the Company’s Form 40 -F annual report, annual information form
and other filings with the Securities and Exchange Commission and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.
Cautionary Note to U.S. and other Investors
Estimates of mineralization and other technical information included or referenced in this
press release have been prepared in accordance with NI 43-101. The definitions of proven
and probable 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 reserves, the three-year historical average price is used in any reserve
or cash-flow analysis to designate reserves and the primary environmental analysis or
the report must be filed with the appropriate governmental authority. As a result, the
reserves reported by the Company in accordanc e with NI 43 -101 may not qualify as
"reserves" under SEC standards. In addition, the terms "mineral resource", "measured
mineral resource", "indicated mineral resource" and "inferred 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; "inferred mineral resources" have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian securities laws, estimates of inferred
mineral resources may not form the basis of feasibility or pre-feasibility studies, except
in rare cases. Additionally, disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian securities laws; however, the SEC normally only permits
issuers to report mineralization that does not constitute "reserves" by SEC standards as
in place tonnage and grade without reference to unit measurements. Accordingly,
information contained or referenced in this press release containing descriptions of the
Company's mineral deposits 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.