Platinum Group Metals Ltd. Executes Binding Legal Agreements for Sale of Maseve Mine
VAN_LAW\ 2425381\2
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
P: 604-899-5450
F: 604-484-4710
News Release No. 17-355
November 23, 2017
Platinum Group Metals Ltd. Executes Binding Legal
Agreements for Sale of Maseve Mine
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA – Platinum
Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) (“Platin um Group” “PTM” or the
“Company”) announces the completion of due diligence and the execution of binding legal
agreements to sell Maseve Investments 11 Proprietary Limited (“Maseve”) to Royal
Bafokeng Platinum Limited (“RBPlat”) in a transaction valued at approximately US$74.0
million, payable as to US$62.0 million in cash and US$12.0 million in RBPlat common
shares. The Company first reported the details of this transaction in a news release
dated September 6, 2017. The proceeds of the Maseve sale will be used to pay down a
substantial portion of the Company’s debt.
RBPlat is to pay Maseve an initial US$58.0 million in cash to acquire the concentrator
plant and certain surface assets of the Maseve Min e. A deposit in escrow was paid by
RBPlat in the amount of ZAR 41,367,300 (US$3.0 Million equivalent) on October 9, 2017.
Closing of this first step is subject to certain conditi ons, including RBPlat shareholder
approval at a meeting scheduled for November 30, 2017 and the approval of the South
African Competition Commission. Closing of the second step, to acquire 100% of the
issued equity in Maseve by way of a scheme of arrangement for US$4 million in cash and
approximately US$12 million in RBPlat ordinary shares, is conditional upon the first step
described above being completed, and is subject to certain requirements, including the
approval of the South African Departme nt of Mineral Resources and the approval, or
confirmed obligation, of Maseve’s 17.1% minority shareholder.
Looking forward the Company plans to focus on its large -scale Waterberg project, a
palladium dominant development asset where the Company has established mineral
reserves and resources. The Company recently sold an 8.6% interest in Waterberg to
Impala Platinum Holdings Ltd. for US$17.2 million as part of a transaction where Impala
bought an aggregate 15% interest in Waterberg for US$30.0 million.
About Platinum Group Metals Ltd.
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 productio n. Platinum Group is partnered at Waterberg
with the Japan Oil, Gas and Metals National Corporation, Impala Platinum Holdings Ltd.
and Mnombo Wethu Consultants (Pty) Ltd., an empowerment partner.
“R. Michael Jones”
On behalf of the Board of
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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 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 typ ically
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 forward -looking statements.
Forward-looking statements in this press release include, without limitation, statements
regarding the receipt and timing of required government approvals, satisfaction of other
conditions precedent and consummat ion of the Maseve Sale Transaction as described
herein; the Company’s intended use of proceeds derived from the Maseve Sale
Transaction; and the Company’s plans following the Maseve Sale Transaction .
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 pres s
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; risks
related to the nature of the Maseve Sale Transaction and the uncertainty as to whether
the Company can successfully obtain required government approvals, satisfy other
closing conditions and consummate the Maseve Sale Transaction; potential delays in the
foregoing; 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 complete future funding transactions and either settle or restructure its
debt as required; 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 permits, consents or
authorizations required for its activities and to effect t he Maseve Sale Transaction; 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 strategies;
risks related to contractor performance and la bor 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. Proposed
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changes in the mineral law in South Africa if implemented as proposed would have a
material adverse effect on the Company business and potential interest in projects.
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 accordance 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 miner al 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 o unces" 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 uni t 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.