Platinum Group Metals Receives Favorable Verdict in Wesizwe Platinum Arbitration

Platinum Group Metals Ltd. (TSX:PTM,NYSEMKT:PLG) announced that an arbitrator has ruled in its favor on all matters related to the calculation of Wesizwe Platinum Ltd.’s (OTC Pink:WSZWF) dilution of ownership in the operating company of the WBJV Project 1 platinum mine.

Wesizwe’s stake in the mine is through Africa Wide Mineral Prospecting and Exploration (Pty) Ltd., its subsidiary.

As quoted in the press release:

The favourable award has determined that Africa Wide’s shareholding, in the operating company, Maseve Investments 11 (Pty) Ltd. (‘Maseve’), falls to be reduced to 21.2766% as a result of Africa Wide’s failure to fund its R 213.14 million share of an approved cash call in October 2013.

Based on the dilution formula in the Maseve shareholders’ agreement, as confirmed in the arbitration, the Company calculates that Wesizwe’s ownership in Maseve will be further diluted to 17.0985% (approximately 17.10%) as a result of Africa Wide’s failure to fund its R 234.6 million share of a second approved cash call in February 2014.

Platinum Group expects its shareholding, through its wholly owned subsidiary Platinum Group Metals RSA (Pty) Ltd. (‘PTM RSA’), in Maseve will increase to approximately 82.90% based on the two missed cash calls by Africa Wide. Platinum Group is now able to move forward with plans for transferring diluted project points to a qualified black economic empowerment company and to move forward with its final project finance plans for the ongoing mine build at the WBJV Project 1 Platinum Mine.

Click here to read the full Platinum Group Metals Ltd. (TSX:PTM,NYSEMKT:PLG) press release.