[miningmx.com] – PLATINUM Group Metals (PTM) is to seek investors for its Waterberg platinum project this year, but added that it intended to retain control of the 29 million inferred ounce prospect.
Commenting in a first quarter and project update, the Toronto-listed firm said it would speak with its partners and other third parties interested to become involved at Waterberg, described by CIBC Capital Markets in 2013 as “a company maker”.
The Waterberg project is situated in the northern limb of the Bushveld Complex north of Ivanhoe Mines’ Platreef project and Mogalakwena, the mechanised, low-cost Anglo American Platinum mine.
According to CIBC, the Waterberg deposit is wide and relatively shallow and could result in a mine producing up to 450,000 oz/year of platinum group metals (3E).
PTM said it would “… consider transactions with the potential to provide funding for additional work,” adding that the goal was to advance the project to a pre-feasibility study “… while maintaining our interest in the Waterberg joint venture and maintaining an effective majority interest in the Waterberg extension”.
It added that it would work with Macquarie Bank in South Africa in an effort to identify financing alternatives for black economic empowerment (BEE) partners “… so that they may become fully funded on both Project 1 and at Waterberg”.
Project 1 is the 82.9%-owned Western Bushveld Joint Venture which PTM hopes will begin production of an estimated 275,000 ounces of platinum, palladium, rhodium and gold from the end of this year.
Financing of the project became problematic in October 2013 when its BEE partner, Africa Wide, elected not to follow its rights. On December 31, PTM raised $113.8m (C$132m) before costs after issuing 214.8 million shares. Commenting in its update, PTM said cash following the bought deal now totalled C$165m.
Expenditure on Project 1 to date totalled $343m against a total peak-funding estimate of $502m, the company said.
“The company’s key business objective and focus for calendar 2015 will be to continue with underground development and mine construction at Project 1 and to achieve first production in calendar Q4 2015,” it said.
“The company also plans to advance both the Waterberg JV Project and the Waterberg Extension Project through project and infrastructure engineering as well as modest confirmation drilling and exploration activities,” it said.
Commenting on the markets, PTM said it believed platinum and palladium would be in deficit for 2015 which, combined with a lower South African rand, would provide “… a positive environment to commence production”.
