VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 04/09/13 -- Platinum Group Metals Ltd. (TSX: PTM)(NYSE MKT: PLG) ("Platinum Group" or the "Company") reports the Company's financial results for the three and six months ending February 28, 2013. For details of the February 28, 2013 Condensed Consolidated Interim Financial Statements ("Financial Statements") and Management's Discussion and Analysis please see the Company's filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). Shareholders are encouraged to visit the Company's website at www.platinumgroupmetals.net. Shareholders may request a copy of the complete February 28, 2013 Financial Statements from the Company free of charge.
The Company's cash position at February 28, 2013 was $186.82 million, including approximately $22.30 million in restricted cash. At April 9, 2013 the Company's cash position is approximately $196 million, including approximately $22 million in restricted cash. The company holds cash in both Canadian dollars and South African Rand and changes in the exchange rate may create variance in the cash holdings reported in Canadian dollars. All amounts herein are reported in Canadian dollars unless otherwise specified.
The Company obtained credit approval for a US$260 million project loan facility on December 6, 2012 and closed a $180 million equity financing on January 4, 2013 (details below).
In January 2013, Platinum Group expanded its construction efforts on its 74% owned WBJV Project 1 Platinum Mine in South Africa from the Phase 1 development of twin underground declines to surface infrastructure construction for a mill and a second set of twin underground declines. The Company also increased its drilling program on the Waterberg Platinum project with 15 drill rigs. These programs continue at this time.
Highlights For The Quarter Ending February 28, 2013
-- On December 6, 2012 the Company announced that a syndicate of lead arrangers had obtained credit committee approval for a US$260 million Project Loan Facility for the construction of the Project 1 Platinum Mine. The credit approval is not subject to further syndication prior to closing. Closing and draw down of the loan facility is subject to the negotiation and execution of final documentation and satisfaction of conditions precedent.-- On December 10, 2012 and December 12, 2012 the Company announced and then priced an offering of 225,000,000 common shares at a price of $0.80 per common share, for aggregate gross proceeds of $180,000,000. Closing of the offering occurred on January 4, 2013 for net proceeds to the Company of $169,246,000, after underwriters' fees and the estimated expenses of the offering.-- On February 1, 2013 the Company published an updated inferred mineral resource estimate on the Waterberg Joint Venture area covering the first 2.8km of T-layer and 5.4km of F-layer strike length starting from the southern boundary of the property position. On March 18, 2013 the Company filed the associated National Instrument 43-101 technical report entitled "Revised and Updated Mineral Resource Estimate for the Waterberg Platinum Project, South Africa".-- A US$100 million Phase 1 development program at Project 1 was approximately 95% complete at February 28, 2013. Subsequent to the end of the second quarter, on March 28, 2013, a major milestone for the Company was reached when the sinking of the twin Phase 1 declines at the north location intersected the Merensky Reef at approximately 1,100 metres linear as planned. Stockpiling of Merensky ore has now begun. Substantial surface infrastructure has also now been constructed on site. Major milling components for the concentrator have been ordered subsequent to quarter end.