Platinum Group Metals (TSX:PTM)(NYSE American:PLG)(NYSE MKT:PLG) (“Platinum Group” or the “Company”) announces that the transfer of all Waterberg Prospecting Rights held by the Company to a dedicated joint venture corporation, Waterberg JV Resources (Pty), has been approved by the South African Department of Mineral Resources (“DMR”).
Platinum Group Metals RSA Pty Ltd (100% owned by the Company) owns a 45.65% direct interest in the Waterberg Project. The Japan Oil, Gas and Metals National Corporation (“JOGMEC”) holds a 28.35% direct interest in the project and BEE partner Mnombo Wethu Consultants (Pty) Ltd (“Mnombo”) holds a direct 26.0% interest. The Company currently holds a 49.0% interest in Mnombo.
The Waterberg Project is one of the few large palladium dominant deposits in the world. The Company believes that as a result of its shallow depth, good grades and a fully mechanized mining approach, the Waterberg Project has the opportunity to be a safe mine within the lowest quartile of the industry cost curve. The project resources consist of 60% palladium and the Independent Pre-Feasibility Study on the Waterberg Project estimates that Waterberg will produce 472,000 ounces of palladium annually … about 6% of the world’s palladium production in 2015.
R. Michael Jones, CEO of Platinum Group Metals Ltd said:
“We are very pleased that the DMR has approved the transfer of the ownership structure to our dedicated joint venture company at this time.
The transfer allows us to prepare to file a mining right application and work on specific financing alternatives and strategic transactions. Interest in the Northern Limb and palladium have increased recently.”