Implats CEO Nico Muller
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – JSE-listed Impala Platinum (Implats) will buy a combined 15% interest in the Waterberg platinum group metals (PGMs) project from TSX- and NYSE-listed Platinum Group Metals (PTM) and the Japan Oil, Gas and Metals National Corporation (Jogmec) for $30-million.
Implats has also secured an option to acquire majority ownership of the project following the completion of a definitive feasibility study (DFS).
The Waterberg project, in Limpopo, is currently owned by PTM, Jogmec and Mnombo Wethu Consultants and represents a large-scale PGM resource with an attractive risk profile given its shallow nature.
This facilitates fully mechanised production with the potential for the project to have among the lowest operating costs in the PGM sector.
Implats will be closely involved with the DFS process, which is intended to examine alternative options to establish a preferred development path for the project.
It will have 90 business days following approval of the DFS to decide whether it wishes to exercise its option to acquire control of the project, and a further 90 business days to confirm acceptable financing arrangements.
Should it decide to exercise its option, Implats will obtain a 50.01% shareholding by buying an additional 12.195% equity interest from Jogmec for $34.8-million and by contributing $130-million into Waterberg in return for an additional 22.815% equity interest.
“We have made it a priority to increase Implats’ strategic optionality and this investment represents an important step to create the potential to develop a significant, lower cost, lower risk resource. We look forward to working with PTM, Jogmec and Mnombo on the feasibility study process,” says Implats CEO Nico Muller.
“We are extremely excited about the participation of Implats in the Waterberg project. Implats will be fully involved in the Waterberg DFS and the fully integrated nature of Implat’s business also offers a clear potential roadmap to market for Waterberg production. It is very satisfying to see the Waterberg discovery recognised and advanced by Implats,” adds PTM CEO R Michael Jones.