Platinum Group Metals Ltd. Received Notice That Impala Platinum Will Not Exercise Option
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838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-415
June 15, 2020
Platinum Group Metals Ltd. Received Notice That Impala
Platinum Will Not Exercise Option
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” or the “Company”) reports that this morning Impala Platinum Holdings Ltd.
(“Implats”) has given formal notice that it does not intend to exercise its option to purchase
and earn into a 50.01% interest in the Waterberg Project. Implats stated that
“notwithstanding the positive progress achieved on the Call Period Program to date, and the
strategic alignment between the Waterberg asset and Implats stated portfolio objectives, the
unprecedented events brought about by the COVID -19 pandemic has necessitated Implat s
management and Board to re-evaluate the impact of the increased economic uncertainty on
Implats’ strategy and risk appetite across the Group in the short, medium and long term”.
Implats indicates that work on a 55 Million Rand Call Period Program, funded by them, has
made positive progress , and will continue to be funded by them to c ompletion in August.
They also indicate they intend to continue discussions in good faith on potential smelter off-
take arrangements for the project. Implats is a 15% shareholder in Waterberg JV Resources
Pty Ltd. (“Waterberg JV Co.”), the project joint venture company. Implats reiterated their
support of both the Waterberg project and the JV Partners and plans to remain an active
participant, including funding of their share of costs, subject to future considerations. Implats
will not receive credit at the joint venture level for the funded 55 million Rand budget as set
out in the joint venture agreements.
Platinum Group holds a 50.2% interest in Waterberg JV Co. directly and indirectly and is the
manager of the project. Under the joint venture agreements Implats had until 90 days after
the grant of a Mining Right to decide on the ir option. The Company has recently received
interest in the Waterberg Project for funding and strategic off -take from other interested
parties. T hese discussions will c ontinue while the Call Period Program and mining right
application work are ongoing.
The Company announced a non-brokered private placement on June 2, 2020. Closing of this
private placement has been postponed as a result of this news from Implats.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground
palladium, platinum, gold and rhodium (“PG M”) deposit located in South Africa . An
Independent Definitive Feasibility Study for the Waterberg Project was approved by
Waterberg JV Co. on December 5, 2019.
The Waterberg Project was discovered by Platinum Group and is being jointly advanced with
the shareholders of Waterberg JV Co., being Platinum Group, Implats, Japan Oil, Gas and
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PLATINUM GROUP METALS LTD. …2
Metals National Corporation, Hanwa Co. Ltd. and Mnombo Wethu Consultants (Pty) Ltd.
(“Mnombo”).
On behalf of the Board of
Platinum Group Metals Ltd.
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.
The recent COVID-19 pandemic and related measures taken by govern ment create uncertainty
and have had, and may continue to have, an adverse impact on many aspects of the Company’s
business, including employee health, workforce productivity and availability, travel restrictions,
contractor availability, supply availabili ty, the Company’s ability to maintain its controls and
procedures regarding financial and disclosure matters and the availability of capital and insurance
and the costs thereof, some of which, individually or when aggregated with other impacts, may
be material to the Company.
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 forward -looking statements. Forward-looking statements in this press release
include, without limitation, statements regarding Implats’ non -exercise of its purchase and
development option for Waterberg JV Co., potential smelter off-take arrangements for the project,
continued funding and completion of the Call Period Budget, potential alternative project funding
and strategic off -take arrangements, and the Company’s private placement. 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 forward -looking statements by the Company are not
guarantees of futu re results or performance and that actual results may differ materially from
those in forward -looking statements as a result of various factors, including possible adverse
impacts due the global outbreak of COVID -19 (as described above), 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; additional financing
requirements; the 2019 Sprott Facility is, and any new indebtedness may be, secured and the
Company has pledged its shares of Platinum Group Metals (RSA) Proprietary Limited (“PTM RSA”),
and PTM RSA has pledged its shares of Waterberg JV Co. to Sprott, under the 2019 Sprott Facility,
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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 2019 Sprott Facility or any new secured indebtedness;
the Company’s history of losses and negative cash flow; the Company’s ability to c ontinue as a
going concern; the Company’s properties may not be brought into a state of commercial
production; uncertainty of estimated production, development plans and cost estimates for the
Waterberg Project; discrepancies between actual and estimated m ineral 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 uncertainty of alternative funding sources for Waterberg JV Co. ; the Company may become
subject to the U.S. Investment Company Act; 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; the ability of the
Company to retain its key management employees and skilled and experienc ed personnel;
conflicts of interest; 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 clai ms or property; changes in national 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 a nd
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 failures to comply with legislation; the Company’s
common shares may be delisted from the NYSE American or the T oronto Stock Exchange if it
cannot maintain compliance with the applicable listing requirements; and other risk f actors
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.co m, 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 w hich 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 herein 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 Guid e 7 standards,
mineralization may not be classified as a “reserve” unless the mineralization can be economically
and legally extracted or produced at the time the “reserve” determination is made. 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”, “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 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. In
particular, “inferred mineral resources” have a great amount of uncertainty as to their existence
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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. Disclosure
of “contai ned ounces” in a resource is permitted disclosure under NI 43 -101; however, SEC
Industry Guide 7 normally only permits issuers to report mineralization that does not constitute
“reserves” by SEC Industry Guide 7 standards as in-place tonnage and grade without reference to
unit measures. 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 SEC Industry Guide 7.