Platinum Group Metals Receives Final Government Approval For Maseve Mine Sale

Platinum Group Metals Ltd. (TSX:PTM) reported that government approval has been received for Royal Bafokeng Platinum Limited (“RBPlat”) to acquire 100 percent of the shares in Maseve Investments 11 (Pty) Ltd., the holding company of the Maseve Mine, and all shareholder loans owed by Maseve, for an aggregate consideration in cash and RBPlat common shares, valued on September 6, 2017 at approximately US$16 million.

As quoted in the press release:

The South African Department of Mineral Resources (“DMR”) has granted consent in terms of section 11 of the Mineral and Petroleum Resources Development Act to transfer the entire issued share capital in Maseve held by the Company and one minority shareholder to RBPlat.  Maseve is the holder of the mining right underlaying the Maseve Mine.  With the grant of section 11 approval all conditions precedent to the completion of the sale of Maseve to RBPlat (the “Maseve Sale Transaction”) have now been met.

The company and RBPlat announced a term sheet for a two-step sale transaction valued at approximately US$74 million on September 6, 2017.  Later, on November 23, 2017, definitive agreements were executed.  On April 5, 2018 Maseve completed the sale of the Maseve concentrator plant and certain surface rights to RBPlat for cash consideration.  RBPlat will now acquire 100 percent of the shares (“Step Two”) in Maseve, the holding company of the Maseve Mine, and all shareholder loans owed by Maseve, for an aggregate consideration in cash and RBPlat common shares, valued on September 6, 2017 at approximately US$16 million (approximately US$15.45 million at present) of which approximately US$854,935 (approximately US$755,378 at present) is to be paid in RBPlat common shares to a minority shareholder of Maseve.

The Company intends to pay all of its net proceeds from Step Two, which may take several months to be fully realized into cash, to reduce outstanding indebtedness pursuant to a secured loan facility (the “LMM Facility”) with Liberty Metals & Mining Holdings, LLC (“LMM”).

Closing of Step Two is expected to be complete before the end of April, 2018.  Once Step Two is complete the Company will no longer be responsible for care and maintenance costs or the ongoing commitments of Maseve.

For more details please refer to the Financial Statements and Management’s Discussion and Analysis for the six months ended February 28, 2018, the Company’s Annual Report on Form 20-F and the Company’s Annual Information Form for the year ended August 31, 2017.

Michael Jones, CEO, commented:

The Board of Directors of Platinum Group appreciate the DMR’s timely approval.  The sale of the Maseve Mine is important for Platinum Group to reduce debt and allow us to focus on our large-scale bulk, Waterberg palladium discovery.  RBPlat will be able to preserve jobs and combine Maseve with their adjacent operations.

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