Platinum Group Metals Waterberg Project and Corporate Update
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
P: 604-899-5450
F: 604-484-4710
News Release No. 18-379
September 20, 2018
Platinum Group Metals Waterberg Project
and Corporate Update
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” “PTM” or the “Company”) is pleased to announce as project operator that
the Definitive Feasibility Study (“DFS”) for the Waterberg Project is advancing according to
plan. The target date for the completion o f the DFS is the end of calendar Q1 2019. An
updated resource model to be used in the DFS is in the final stages of calculations and peer
review. Three-dimensional models have been provided to independent project engineer for
mine design, Stantec Consulting International LLC (“Stantec”). The mine design involves
bulk underground fully mechanized methods. Optimization of the methods utilized for the
Company’s October 2016 Waterberg Pre-feasibility Study is in progress. (See the technical
report dated October 19, 2016 and filed on SEDAR titled “Independent Technical Report on
the Waterberg Project Including Mineral Resource Update and Pre -Feasibility Study”.)
Stantec brings global mine design and operating experience in these methods to the study.
Metallurgical test work and infrastructure designs are also progressing well , led by
independent project engineer for plant design and metallurgy DRA Projects SA (Proprietary)
Limited, who are an experienced platinum and palladium plant , engineering and
construction firm. The DFS is looking at two potential scales for the project as previously
announced, including a 600,000 tonne per month option and a 250,000 -350,000 tonne per
month option.
A Mining Right Application for the Waterberg Project, endorsed by all of the Waterberg Joint
Venture partners , including Impala Platinum Holdings Ltd. (“Implats”), Japan Oil, Gas
and Metals National Corporation (“JOGMEC”) and Mnombo Wethu Consultants (Pty) Ltd.
(“Mnombo”), was filed in early September 2018. The detailed consultation process in the
area of the mine has commenced as required under Environmental Assessment and Mining
Right regulations and specialist consultants have been engaged to manage and document
this process. Co-operation with the Capricorn Municipality surrounding the mine has been
active and positive including work on regional water supply plans and infrastructure under
a recently signed co -operation agreement. Work on the planned national electrical grid
connection for the project is also progressing well. Consultation on powerline servitudes
and permits are advancing on plan as part of the DFS.
Platinum Group Metals is the Waterberg project operator and currently holds an effective
50.02% interest in the project. Implats, the world’s second largest platinum producer,
owns a 15% interest. The project is being managed by a joint technical committee which
regularly brings together expertise from the senior levels of all partners , including the
construction and operating experience of Im plats. Mnombo, a black economic
empowerment company, holds a 26% project interest. The Company owns a 49.9%
interest in Mnombo. JOGMEC holds a 21.95% project interest in the Waterberg Project and
PLATINUM GROUP METALS LTD. …2
is in the process of transferring a 9.755% interest to Japanese conglomerate 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,
owns a 15% stake in Platinum Group. Implats is an active participant in the joint venture
and holds an option to increase their stake to 50.01% following the completion of the DFS.
Platinum Group Metals recently was in New York for events and meetings of “Platinum
Week”. The Waterberg Project is dominated by palladium and there are very few deposits
of this type in the world. Palladium has been gaining market interest based on continued
demand in the auto sector, due to a growing trend towards gasoline engines and hybrids
that use palladium dominant catalysts. Platinum Group Metals is focused on completing the
DFS for Waterberg on time and on budget with the assistance of its project partners.
On November 23, 2017 the Company announced the execution of binding legal agreements
to sell Maseve Investments 11 Proprietary Limited (“Maseve”) to JSE listed Royal Bafokeng
Platinum Limited (“RBPlat”). The Company first reported the details of the transaction in a
news release dated September 6, 2017. The sale later closed on April 26, 2018 after
completion of regulatory review and all conditions precedent, whereby RBPlat and its
wholly-owned subsidiary, Royal Bafokeng Resources Proprietary Limited:
• acquired the concentrator plant and related surface assets owned by Maseve for an
aggregate consideration equal to the ZAR equivalent of US $58 million; and
• acquired 100% of the shares in and shareholder claims owing by Maseve for an
aggregate purchase consideration equal to the ZAR equivalent of US $12 million and the
return to the Company of an environmental bond valued at approximately US $4.0
million.
(collectively “the Maseve Transaction”).
The Company reports that it is in receipt of a summons issued by Africa Wide Mineral
Prospecting and Exploration (Pty) Limited ("Africa Wide") whereby Africa Wide has instituted
legal proceedings in South Africa against the Company’s wholly owned subsidiary, Platinum
Group Metals (RSA) (Pty) Limited, RBPlat and Maseve in relation to the Maseve Transaction.
Africa Wide is seeking, at this very late date, to set asid e or be paid increased value for,
the closed Maseve Transaction. Africa Wide held a 17.1% interest in Maseve prior to the
Maseve Transaction. RBPlat consulted with senior counsel, both during the negotiation of
the Maseve Transaction and in regard to the current Africa Wide legal proceedings. The
Company has also received legal advice to the effect that the Africa Wide action, as issued,
is ill-conceived and is factually and legally defective.
Qualified Person
R. Michael 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.
PLATINUM GROUP METALS LTD. …3
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.
Waterberg has potential to be a low cost dominantly palladium mine and Impala Platinum
recently made a strategic investment in the Waterberg Project.
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
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 forwa rd-looking statements. Forward-looking
statements in this press release include, without limitation, JOGMEC’s potential transfer of a
portion of its interest in the Waterberg Project to Hanwa; the potential for Implats to exercise
its rights and fund addi tional development work on the Waterberg Project; the timing and
completion of a DFS and updated resource model; the potential production scale of the
Waterberg Project; the Waterberg Project’s potential to be a large scale, bulk mineable, fully
mechanized, low-cost dominantly palladium mine ; [potential developments in the palladium
markets;] and the potential outcome of the Africa Wide litigation . Although the Company
believes the forward -looking statements in this press release are reasonable, it can giv e 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; the Company’s history of losses; the Company’s inability to generate sufficient
cash flow or raise sufficient addit ional capital to make payment on its indebtedness, and to
comply with the terms of such indebtedness; the LMM Facility 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 Wat erberg JV Resources (Pty) Limited (“ Waterberg JV Co.”) to Liberty Metals &
Mining Holdings, LLC, a subsidiary of LMM, under the LMM Facility, which potentially could result
PLATINUM GROUP METALS LTD. …4
in the loss of the Company’s interest in PTM RSA and the Waterberg Project in the e vent 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 definitive
feasibility study 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 between 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; 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; 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 require d; 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 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 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; 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 National Instrument 43 -101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”). The definitions of proven and probable Mineral 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 Mineral Reserves, the three-year historical
average price is used in any Mineral Reserve or cash flow analysis to designate Mineral 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 “Mineral 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
PLATINUM GROUP METALS LTD. …5
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.