HomeNewsImplats makes first payment to gain stake in Waterberg project

Implats makes first payment to gain stake in Waterberg project

Dual-listed Platinum Group Metals has received $17.2 million from Implats for the sale of an 8.6% interest in the Waterberg project and JOGMEC has received $12.8 million for the sale of a 6.4% interest in the Waterberg project.

Implats has the option to increase its stake in Waterberg Resources to 50.01% through additional purchases and earn-in arrangements totalling $166 million following the completion of a definitive feasibility study (DFS); and has a right of first refusal to smelt and refine Waterberg concentrate.

If Implats exercises its option to advance to a 50.01% interest in Waterberg Resources, JOGMEC will retain a 5% interest and certain metal marketing rights to final metal related to the project, while Platinum Group Metals would retain a 31.96% direct and indirect interest in Waterberg Resources.

The transaction agreements also provide for the transfer of equity and the issuance of additional equity to one or more broad based black empowerment partners, at fair value.

“We are very pleased to close the first phase of this transaction and to welcome Implats to the Waterberg team, says Platinum Group Metals CEO Michael Jones.

“We will immediately get to work on the DFS.  Waterberg represents a large-scale PGM resource with an attractive risk profile given its shallow nature, which facilitates fully mechanised production with the potential for the project to have amongst the lowest operating costs in the PGM sector.  The deposit is dominated by palladium at a time when prices and interest in this essential metal are increasing,” he says.

The participation of Implats, the world’s second largest platinum producer with fully integrated mine to market operations, represents a significant step in the advancement of the Waterberg project towards potential development and production.

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.

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