Platinum Group Metals Ltd. Reports Waterberg Definitive Feasibility Program Update And NYSE American Update
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
P: 604-899-5450
F: 604-484-4710
News Release No. 18-374
May 29, 2018
Platinum Group Metals Ltd. Reports Waterberg Definitive
Feasibility Program Update And NYSE American Update
(Vancouver/Johannesburg) Platinum Group Metals Ltd. ( PTM:TSX; PLG :NYSE American)
(“Platinum Group”, “PTM” or the “Company”) announces that work on a Definitive Feasibility
Study (“DFS”) being completed by Waterberg JV Resources (Pty) Ltd. (“Waterberg JV Co.”),
with the Company serving as operator, and with input from Impala Platinum Holdings Ltd.
(“Implats”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”), is proceeding
according to plan. The latest phase of 38,000 meters of infill drilling has been completed
safely and on b udget, bringing the total drill testing completed on the project to
approximately 346,000 meters. The Company plans to publish an updated resource model
and technical report for the Waterberg Project, including results from the latest drilling, in
calendar Q3 2018. This new resource model will form the basis for mine planning and
reserve estimation in the DFS. The DFS remains on-track for completion at the end of
calendar Q1 2019. Independent engineering for the DFS is underway as planned by the
jointly appointed engineering firms Stantec Consulting International LLC and DRA Projects
SA (Proprietary) Limited along with input from technical specialists from each of the joint
venture partners.
R. Michael Jones CEO said, “We have successfully completed the infill drill program and we
are working very closely with all our partners, stakeholders and engineers to maximize the
value of this extraordinary deposit – all at a time when the interest in palladium , the
project’s primary metal, is increasing”.
Recent infill drilling as described above has intersected areas of 40 to 100 meters of vertical
thickness with palladium, platinum, gold and rhodium mineralization as anticipated in the
“Super F” areas of the current resource model. The recent intercepts compare favorably to
the mine plan in an independent Pre-Feasibility Study1 for the project published in October,
2016. Assay results from the latest drilling continue to be received.
Current Platinum Group Element probable reserves at the Waterberg Project (100%) 1 are
12.3 million ounces, consisting of 61% palladium, 30% platinum, 8% gold and 1% rhodium
plus 191 million and 333 million pounds of copper and nickel respectively. At a 2.5 gram
per tonne (“g/t”) cut-off grade, probable reserves are comprised of 102.7 million tonnes at
3.73 4E g/t, consisting of 2.29 g/t Pd, 1.11 g/t Pt, 0.29 g/t Au, 0.04 g/t Rh, 0.08% Cu and
0.15%Ni. Much of the Waterberg Project area still remains to be drilled and assessed. The
Waterberg deposit remains open down dip and along strike. The reserves are a subset of
a larger indicated resource.
1 NI 43 101 technical report entitled “Independent Technical Report on the Waterberg Project Including Mineral
Resource Update and Pre-Feasibility Study — Project Areas located on the Northern Limb of the Bushveld
Igneous Complex, South Africa” dated October 19, 2016 (the “Waterberg PFS”).
PLATINUM GROUP METALS LTD. …2
Platinum Group currently holds an effective 50.02% interest in the Waterberg Project.
Implats owns a 15% interest and Mnombo Wethu Consultants (Pty) Ltd. (“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 planning to
transfer a 9.755% interest to their partner 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, recently purchased a 14.11%
stake in Platinum Group. All partners are active in the oversight of the project. Implats
holds an option to increase their stake to 50.01%.
NYSE American Noncompliance Notice
On May 23, 2018 the Company received a letter from NYSE American LLC (“NYSE
American”) stating that it is not in compliance with th e continued listing standards as set
forth in Section 1003(f)(v) of the NYSE American Company Guide (the “Company Guide”)
due to the low selling price of the Company’s common shares. In order to maintain its
listing, the Company must demonstrate sustained price improvement within a reasonable
period of time, which the NYSE American has determined to be no later than November 23,
2018, or the Company must effect a reverse stock split of the Company’s common shares
by November 23, 2018.
Qualified Person
R. M ichael Jones, P.Eng., the Company’s President, Chief Executive Officer and a
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 independent qualified person reports as well as visiting the Waterberg Project site
regularly.
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.
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
PLATINUM GROUP METALS LTD. …3
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 forward -looking statements.
Forward-looking statements in this press release include, without limitation, statements
regarding compliance with NYSE American continued listing standards, the completion of a
new resource model, new technical report and DFS for the Waterberg Project and the bulk
mineable nature of the Waterberg Project . Estimates of mineral reserves and mineral
resources are also forward -looking statements because they reflect estimates of
mineralization that may be encountered in the future and potential future revenues and
expenses. Although the Company believes the fo rward-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 financing requirements and the uncertainty of
future financing ; 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 Company’s secured
loan facility (the “LMM Facility”) with Liberty Metals & Mining Holdings, LLC (“LMM”) 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 Co. to 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 DFS for the Waterberg Project, which is subject to resource
upgrade and economic analysis requirements; uncertainty of estimated production,
development plans and cost estimates for the Waterberg Project; discrepancies betw een
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; the Company’s ability to regain compliance
with NYSE American continued listing requirements; 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. or former shareholders of
Maseve; 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,
PLATINUM GROUP METALS LTD. …4
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 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 o perations 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; 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 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
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 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” 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.