VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 07/12/13 -- Platinum Group Metals Ltd. (TSX: PTM) (NYSE MKT: PLG) ("Platinum Group" or the "Company") reports the Company's financial results for the three and nine months ending May 31, 2013. For details of the May 31, 2013 Condensed Consolidated Interim Financial Statements ("Financial Statements") and Management's Discussion and Analysis ("MDA") 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 May 31, 2013 Financial Statements from the Company free of charge.
The Company's cash position at May 31, 2013 was $152.56 million, including approximately $16.70 million in restricted cash. At July 12, 2013 the Company's cash position remains at approximately $152 million, including approximately $15 million in restricted cash. The Rand being stronger at July 12th relative to May 31st translates into higher Canadian dollar balances on cash held even though in Rand terms funds have been expended since May 31st. The company holds cash in Canadian dollars, United States dollars and South African Rand. All amounts herein are reported in Canadian dollars unless otherwise specified.
In January 2013, Platinum Group commenced with Phase 2 construction on its 74% owned WBJV Project 1 Platinum Mine in South Africa consisting of underground development, surface infrastructure, a milling and concentrating plant and tailings impoundment. Major components for the mill and concentrator have been ordered. Phase 1 construction of surface infrastructure and the development of twin underground declines at the north mine location, down to the elevation of the first ore blocks, was completed in March. Phase 2 developments at the north mine include lateral development, ventilation raise bores and further decline sinking into deeper mining blocks. On the south mine location on the Project 1 mining permit area, the sinking of a second set of twin underground declines is in progress.
During the nine month period the Company also executed a drilling program on the Waterberg Joint Venture. To date approximately 129,000 metres have been drilled in 111 bore holes on the project. At present, planned 2013 drilling on the Waterberg Joint Venture is nearing completion and six rigs remain active. A resource update and a preliminary economic assessment are in progress at Waterberg.
Highlights For The Period Ending May 31, 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 million. Closing of the offering occurred on January 4, 2013 for net proceeds to the Company of $169.21 million after underwriters' fees and 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 completed in March and 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 down the decline tunnels as planned. Stockpiling of Merensky ore has now begun.-- On April 24, 2013 the Company announced the execution of a binding life of mine concentrate off-take agreement for the WBJV Project 1 Platinum Mine with Rustenburg Platinum Mines Limited, a wholly owned operating subsidiary of Anglo American Platinum.-- On May 15, 2013 the Company announced positive initial test results from metallurgical samples of the "T2" and "F" zones from the Waterberg platinum deposit. Estimated recoveries for platinum, palladium and gold in scoping flotation tests completed in South Africa at SGS Laboratories ("SGS"), averaged 88% for the T2 zone and 83% for the F Zone.-- Subsequent to May 31, 2013, on June 10, 2013 the Company announced that Waterberg bore hole WB-99 intersected 25.5 meters of the T2 layer grading 6.4 grams per tonne 3E (1.86 g/t Platinum, 3.20 g/t Palladium and 1.37 g/t Gold, 0.34% copper, 0.17% nickel) at a depth of 681.0 metres to 706.5 metres. This intercept is located 800 meters northeast along strike from the previous intercepts and 300 meters northeast of the blocks in the current T2 layer resources.