PTM signs offtake agreement with Amplats subsidiary
JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed Platinum Group Metals’ (PTM’s) 74%-owned operating company Maseve Investments has signed a binding life-of-mine concentrate offtake agreement with Anglo American Platinum subsidiary Rustenburg Platinum Mines (RPM) for the Western Bushveld Joint Venture Project 1 mine (Project 1).
Maseve would sell all concentrate from Project 1 to RPM for the life-of-mine, with RPM required to purchase and take delivery of all concentrate.
The agreement, which stipulated that the concentrate be delivered to a smelter in Rustenburg, would come into effect when the initial delivery of concentrate from Project 1 took place, and covered the Merensky and UG2 ores.
It also provided for a certain stipulated quality of concentrate to be maintained and for concentrate to be delivered to other locations in the case of smelter maintenance, as well as allowed for a standard discount to metal payability and customary penalties for unwanted elements.
This announcement followed a tender process for the offtake and the exercise of a right of first refusal by RPM.
“This is an important material contract for Project 1 and it is fitting that we have concluded this contract as we start our surface stockpile of Merensky ore for the mill and concentrator, planned for start-up at the end of 2014,” said PTM CEO and president R Michael Jones.
The development of two twin sets of declines to access the Merensky reef and the construction of mine facilities were continuing at Project 1.
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