Platinum Group Metals Ltd. Reports Impala’s Waterberg Amended Purchase and Development Option Agreement Completed; Work Program in Progress
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-412
April 3, 2020
Platinum Group Metals Ltd. Reports Impala’s Waterberg
Amended Purchase and Development Option Agreement
Completed; Work Program in Progress
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM-TSX; PLG-NYSE American)
(“Platinum Group” or the “Company”) reports that shareholders of Waterberg JV Resources
Proprietary Limited (“Waterberg JV Co.”) have executed a formal Amended Purchase and
Development Option agreement with Impala Platinum Holdings Ltd. (“Implats”).
In consideration for the amendment, announced February 27, 2020 , Implats is funding
100% of a new implementation budget and work program (the “Work Program ”) effective
February 1, 2020. The Work P rogram, as approved by Waterberg JV Co., is aimed at
increasing confidence in specific areas of the Waterberg DFS while awaiting the expected
grant of a Mining Right and Environmental Authorization and is estimated to cost
approximately Rand 55 million. The Work Program is being carried out remotely and in
compliance with current South African health related stay at home restrictions.
The termination date of Implats’ Purchase and Development Option was amended from the
original date of April 17, 2020 to 90 calendar days following receipt of an executed Mining
Right for the Waterberg Project. All other terms of the Purchase and Development Option
remain unchanged. Amounts spent by Implats for the Work Program will be offset against
Implats’ future development funding commitment should it elect to exercise the Purchase
and Development Option. The previous guidance for the grant of the Mining Right in Q2
2020 may be delayed by the current South African stay at home restrictions.
Platinum Group will continue to be the Manager of the Waterberg Project, as directed by the
technical committee of Waterberg JV Co. A majority of the Company’s South African
personnel are engaged to complete the Work Program , which is being directed by Implats’
technical personnel.
Further detail on the Purchase and Development Option
On November 6, 2017, Implats purchased 15% of the Waterberg JV Co. for US$30 million.
Implats was also granted a Purchase and Development Op tion to increase its stake to
50.01% through additional share purchases from Japan Oil, Gas and Metals National
Corporation (“JOGMEC”) for an amount of US$34.8 million and earn -in arrangements for
US$130 million paid to Waterberg JV Co. to fund development work, as well as a right of
first refusal to smelt and refine Waterberg concentrate.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground
palladium and platinum deposit located in South Africa. The Waterberg Project was
PLATINUM GROUP METALS LTD. …2
discovered by Platinum Group and is being jointly developed with Implats, JOGMEC ,
Mnombo Wethu Consultants (Pty) Ltd. and Hanwa Co. Ltd.
Platinum Group has implemented a work from home policy for both the South Africa and
Canadian offices , inline with government directives . The Company is continuing with
operations utilizing the Company ’s pre -existing remote, secure IT connectivity and video
conferencing in order to continue working effectively.
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 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 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 amendment to the
Purchase and Development Option and other agreements as discussed herein, potential exercise
by Implats of the Purc hase and Development Option, financing and mine development at the
Waterberg Project and grant of the mine right application. 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 future results or performance and that actual results may differ materiall y 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
PLATINUM GROUP METALS LTD. …3
RSA”), and PTM RSA has pledged its shares of Waterberg JV Co. to Sprott, under the 2019
Sprott Facility, which potentially coul d 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 continue 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; Implats may not exercise the Purchase and Development
Option; the Company may become subject to the U.S. Investment Company Act; the failure of
the Company or the other shareholders to fund th eir 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; 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 claims 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 nec essary 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 an d 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 requirem ents; 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.se c.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 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. U nder SEC Industry Guide 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 miner al resources” have a great amount of
PLATINUM GROUP METALS LTD. …4
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. Disclosure of “contained 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 requi rements of SEC
Industry Guide 7.