Waterberg Funding for Impala Platinum's Purchase
Platinum Group Metals Ltd. and Impala Platinum Holdings Ltd. announces that the shareholders of Waterberg JV Resources Proprietary Limited have agreed to amend the terms of the Implats Purchase and Development Option, which was due to be exercised on April 17, 2020 following the Waterberg JV Co.'s approval of the 2019 Definitive Feasibility Study.
In consideration for this amendment, Implats has agreed to fund 100% of a new implementation budget and work programme effective February 1, 2020. The programme, which has been approved by Waterberg JV Co., will be aimed at increasing confidence in specific areas of the DFS while awaiting the expected grant of a Mining Right and Environmental Authorization and is estimated to cost approximately US$4 million. This amount will be offset against Implats' future development funding commitment should it elect to exercise the Purchase and Development Option.
The end date of Implats' Purchase and Development Option will be amended from the original date of April 17, 2020 to 90 calendar days following receipt of an executed Mining Right for the project. All other terms of the Purchase and Development Option remain unchanged.
The work program will include geotechnical drilling along the planned decline positions as set out in the DFS, as well as detailed review of critical areas that could affect the implementation schedule and budget to mitigate execution risks.
The sustainability of water supply and a suitable housing strategy will also be progressed further. The Waterberg JV Co. technical committee and Board have approved the work program that includes the initial work for early 2020 outlined in the DFS. Platinum Group will continue to be the Manager of the project, as directed by the technical committee of Waterberg JV Co., and Implats will direct the new work program.
The Mining Right application for the Waterberg project is well advanced.
