Platinum Group Metals Ltd. ("Platinum Group" or the "Company") announces that its 74% owned operating company, Maseve Investments 11 Pty Ltd ("Maseve"), has executed a binding life of mine concentrate off-take agreement for the WBJV Project 1 Platinum Mine ("Project 1"), with Rustenburg Platinum Mines ("RPM"), a wholly owned operating subsidiary of Anglo American Platinum Limited ("Amplats").
R. Michael Jones, P.Eng, President and CEO of Platinum Group Metals said, "We are pleased to continue our long term positive relationship with Amplats, the largest producer of platinum in the world. This is an important material contract for Project 1. It is fitting that we have concluded this contract as we start our surface stockpile of Merensky ore for our mill and concentrator planned for start-up at the end of 2014."
The Off-Take Agreement ("Agreement") will commence on the initial delivery of concentrate from Project 1 and covers Merensky and UG-2 ores. It is planned that the concentrate will be delivered to the smelter nearby, about 40 kilometers to the southeast, in the city of Rustenburg. Maseve shall sell all of its concentrate to RPM for the life of mine and RPM shall be required to purchase and take delivery of all concentrate in accordance with the Agreement. The Agreement provides, as is customary, 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.
The Agreement follows a competitive tender process for the off-take and the exercise of a first right of refusal by RPM.
The Agreement provides for a standard discount to metal pay-ability and customary penalties for unwanted elements. The exact terms of the Agreement are confidential however the terms are not materially different than the terms considered in the 2009 Updated Feasibility Study and the overall sensitivities considered therein. (Technical Report Filed November 25, 2009 www.sedar.com)
At Project 1 development of two twin sets of declines to access the Merensky Reef initially and the construction of mine facilities are continuing.