Vancouver, British Columbia and Johannesburg, South Africa–(Newsfile Corp. – July 13, 2023) – Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) (“Platinum Group”, “PTM” or the “Company”) presents the Company’s currency effects for the nine-month period ended May 31, 2023 and provides an update and outlook. The Company aims to advance the Waterberg allocation located on the northern branch of the Bushveld complex in South Africa (the “Waterberg Project”). The Waterberg Project is planned as a fully mechanized, shallow, inclined (4E) palladium, platinum, gold and rhodium (“4E”) mine and is expected to be one of the largest and least expensive underground platinum organization metals (“GMPs” or “PGMs”) mines globally.
The company’s short-term objectives include moving the Waterberg Project toward a development and structuring decision, adding structural financing agreements and concentrate selection agreements. The company is also pushing an initiative through Lion Battery Technologies Inc. (“Lion”) platinum and palladium in lithium battery technologies in collaboration with Anglo American Platinum Limited (“Anglo”) and Florida International University (“FIU”).
For more key points on the condensed consolidated interim monetary statements for the nine-month era ending May 31, 2023 (the “Financial Statements”) and Management’s Discussion and Analysis for the nine-month era ending May 31, 2023 (the “Statements Discussion and Analysis”), see Company Filings on SEDAR (www. sedar. com) or EDGAR (www. sec. gov). Shareholders are invited to the Company’s online page in www. platinumgroupmetals. net. Shareholders may obtain a paper copy of the Company’s full monetary statements at no fee upon request.
All amounts shown here are expressed in U. S. dollars, unless otherwise noted. The Company holds money in Canadian dollars, U. S. dollars and South African rands. Changes in exchange rates would likely create discrepancies in money or reported outcomes.
Recent events
On June 21, 2023, the company announced that Lion Battery Technologies Inc. (“Lion”) had contracted with the Battery Innovation Center (“BIC”) in Newberry, Indiana, to help drive commercialization of its next-generation platinum and palladium. Based batteries. Lion advances lithium-sulfur generation and enhanced lithium-ion generation (NMC), the exclusive platinum and palladium catalytic houses. As a component of a project, the BIC will conduct independent large- and small-scale testing to validate Lion’s ownership. composition, suspension and films of platinum and palladium-based electrodes in lithium-sulfur and lithium-ion button cells and bags (NMC811). Purpose of creating prototypes for commercialization in 2024. Lion’s purpose is to expand batteries with fast energies that are 20% to one hundred percent higher than existing technologies, while assembling or exceeding their existing life cycle.
On June 9, 2023, the Company announced that the Japan Energy and Metals Security Organization (“JOGMEC”) and Hanwa Co. Ltd. (“Hanwa”) had established a special purpose company, HJ Platinum Metals Ltd. (“HJM”), to maintain and fund its long-term interests in the Waterberg Project. The combined holdings of JOGMEC (12. 195%) and Hanwa (9. 755%) have been consolidated into a 21. 95% stake for HJM long-term, with JOGMEC to fund 75% of long-term investments in HJM and Hanwa the remaining 25%.
On May 17, 2023, the Company announced that the WE153 exploration drillhole had intercepted platinum organization steel mineralization compatible with zones T and F discovered in the Waterberg Project’s mineral resources and reserves. (Pty) Ltd. (“Waterberg JV Co. “) located off the northern Waterberg Project mining right. Check out the Company’s Management Analysis and Discussion of May 31, 2023 for more key points and research findings.
On March 30, 2023, the Company announced the positive effects of a completed infill drilling crusade at the Waterberg project. The analytical effects of 16 planned drilling in Zone F were revealed. In February 2023, recovered drill cores were recorded and mineralized intersections sampled. and sent for research through Intertek Genalysis Minerals in Australia. The effects will be incorporated into a recent feasibility update and described in more detail below.
On March 24, 2023, the directors and shareholders of Waterberg JV Resources (Pty) Ltd. (“Waterberg JV Co. “) approved a Phase Two budget of $3. 6 million (the “Phase II Budget”) to continue with the paintings on the Waterberg Project. The budget for the current phase, which runs from April 1, 2023 to August 31, 2023, is a subcomponent of the $21 million painting program (as explained below) mandated on October 18, 2022.
On February 21, 2023, the U. S. Patent and Trademark Office announced that the U. S. Patent and Trademark Office was not allowed to do so. The U. S. Department of Defense issued FIU a fifth patent, No. 11,588,144 B2, titled “Battery Cathodes to Improve Stability. “The patent relates to the manufacture of cathodes using palladium as a catalyst in carbon nanotubes. The carbon design provides a barrier between the catalyst and the electrolyte, thus expanding the stability of charging and discharging the electrolyte of a battery. Other patents have been registered recently. Under an agreement between Lion and FIU (the “Sponsored Research Agreement”), Lion owns exclusive rights to all assets developed through FIU, in addition to the granted patents.
On January 26, 2023, the Company announced the effects of the infill drilling crusade on the Waterberg project. The analytical effects of 16 planned drilling wells in Zone T and one of 16 wells planned in Zone F have been revealed. Recovered drill cores were recorded and mineralized intersections were sampled and sent for research through Intertek Genalysis Minerals in Australia.
On 10 November 2022, the Supreme Court of South Africa (the “Supreme Court”) rejected an application dated 31 August 2022 through Africa Wide Mineral Prospecting and Exploration Proprietary Limited (“Africa Wide”) seeking leave to appeal on 14 June 2022. 2022 decision of the High Court of South Africa (the “High Court”) dismissed its challenge to the sale of the Maseve mine in 2018 and awarded prices to the defendants. The defendants were refunded their prices. On 10 July 2023, the Company was informed that Africa Wide had requested a review of the Supreme Court of Appeal’s ruling. Without prejudice to the lack of merit and nature of this application, it was submitted almost seven months after the deadline for such submission. The Company will oppose the request.
On October 18, 2022, the directors and shareholders of Waterberg JV Co. approved a pre-construction painting program (the “Work Program”) for the Waterberg Project in the amount of approximately $21 million within 23 months ending August 31, 2024. Based on the painting program, an initial budget (the “initial budget”) of approximately $2. 5 million was approved for expenditures through March 31, 2023.
On the thirteenth of October 2022, the South African Department of Mineral Resources and Energy (“DMRE”) rejected a series of appeals filed in 2021 against the granting of the Waterberg mining right. The appeal was dismissed and upheld DMRE’s assessment that Waterberg JV Co. met the economic empowerment needs of blacks and the Community Consultation Procedures of the Social and Labor Plan.
On October 4, 2022, the U. S. Patent and Trademark Office announced that the U. S. Patent and Trademark Office was not allowed to do so. The U. S. Department of Defense granted FIU a fourth patent, No. 11,462,743 B2, titled “Battery composed of an intermediate layer of metal. “The patent relates to the use of palladium as an intermediate layer in batteries to stabilize and convert into lithium steel anodes in existing and emerging lithium battery technologies. Other patents are being filed lately. Under the sponsored studies agreement, Lion owns exclusive rights to all assets developed through the FIU, in addition to the patents granted.
On July 27, 2022, the Company entered into a Share Distribution Agreement with BMO Nesbitt Burns Inc. (the “Canadian Agent”) and BMO Capital Markets (the “US Agent” and, in combination with the Canadian Agent, the ” Agents”) for a new market percentage program (the “2022 ATM”) to distribute up to $50. 0 million (or the Canadian dollar equivalent) of non-unusual inventory (the “Presented Percentages”). The Offered Shares will be issued through the Company to the public from time to time, through the Agents, at the option of the Company. The offered Shares sold under ATM 2022 will be sold at the prevailing market value at the time of sale. The net proceeds from those ATM 2022 sales will be used for general operating capital purposes, adding the paint program described above As of July 13, 2023, the Company has issued 1,089,503 Common Shares, through the US Agent. on the NYSE American pursuant to the 2022 ATM, at an average value of $1. 81 for gross receipts of $1. 98 million Fees and expenses directly attributable to the 2022 ATM of $0. 35 million were incurred in the nine-month era ending on May 31, 2023.
Results for the nine months ended May 31, 2023
During the nine-month era ending May 31, 2023, the Company incurred a loss of $4. 05 million ($7. 26 million as of May 31, 2022).
General and administrative expenses of $2. 9 million (May 31, 2022 – $3. 26 million) in the current era were lower than in the comparable era, with accrual of expenses to May 31, 2022 primarily due to legal costs for our successful defense in a lawsuit opposing claims through Africa Wide, which took position in October 2021 and February 2022. Interest rates were zero in the current era to $1. 65 million in the current era comparable nine-month fiscal year 2022. The Company paid off all of its remaining debt in February 2022, thereby eliminating long-term interest expense. The identified current-era foreign exchange gain was $0. 29 million ($0. 12 million loss as of May 31, 2022) due to the appreciation of the US dollar against the current-era Canadian dollar. The Lion Battery joint venture’s battery studies and progression expenses were $0. 30 million in the nine-month period (May 31, 2022: $0. 25 million). Capital redemption expense was $1. 6 million in the era (May 31, 2022: $1. 73 million).
As of May 31, 2023, the monetary source of income comprised primarily of interest earned in the era was $0. 47 million ($0. 09 million as of May 31, 2022).
The loss consistent with the consistent percentage for the existing consistent period of $0. 04, compared to a loss of $0. 08 consistent with the consistent percentage for the nine-month consistent period ended May 31, 2022.
Accounts receivable as of May 31, 2023 totaled $0. 44 million (August 31, 2022 – $0. 38 million), while accounts payable and accrued liabilities totaled $0. 62 million (August 31, 2022 – $1. 12 million). The amounts receivable consisted mainly of value-added taxes refundable to the Company in South Africa. Accounts payable consisted primarily of Waterberg’s engineering fees, geotechnical drilling and backfill costs, accrued fees and normal debts to suppliers.
Waterberg’s total assignment expenses, before spouse reimbursements, for the nine-month era ending May 31, 2023 were approximately $3. 5 million (May 31, 2022: $2. 6 million). After accounting for foreign exchange gains or losses similar to the U. S. dollar, as of May 31, 2023, $38. 6 million of cumulative prices were capitalized for the Waterberg divestiture (May 31, 2022: $43. 4 million). Total asset expenditures from its creation of all investor resources through May 31, 2023 are approximately $83. 8 million. details of the Waterberg divestiture, see note 3 to the financial statements, “Mining Properties and Exploration and Valuation Assets”.
Perspectives
The Company’s number one business objective is to move Waterberg’s allocation toward a progression and structure decision. PTM is the operator of the Waterberg assignment under the direction of a technical committee composed of representatives of the partners of the joint venture Impala Platinum Holdings Ltd. (“Implats”), Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”), JOGMEC and Hanwa.
On October 18, 2022, Waterberg JV Co. approved in precept the pre-structure painting program (as described above) of approximately $21. 0 million over a 23-month period ending August 31, 2024. The painting program focuses on the infrastructure of the project, adding road access, water source, must-have facilities, a first-phase accommodation pavilion, source of strength for the structure of the Eskom utility and the advancement of the Waterberg social plan and paintings. An update to the 2019 Waterberg Final Feasibility Study (“DFS Update”) is also underway, adding a review of cut-off grades, extraction methods, infrastructure plans, planning, concentrate extraction, dry tailings, pricing, and other prospective revisions to the project’s monetary model.
From the paint program, an initial budget of approximately $2. 5 million was approved for expenditures through March 31, 2023, adding thirty-two infill drills, several geotechnical drillings, and one exploration drill. The initial budget ended as planned, for $3. 6 million of paintings approved for spending on March 24, 2023. The budget for the current, recently underway phase includes DFS upgrade engineering, prestructure engineering, power source engineering, and global loan authorization and known pit structure license near the Waterberg mine site.
The initial budget and the momentum-level budget are funded on a prorated basis through the joint venture partners. Subsequent expenditures in accordance with the work programme will be subject to approvals for the next sequential stage on 1 September 2023.
The Company continues to work heavily with regional and local communities and their leaders on mine progression plans to achieve optimal effects and pricing for all stakeholders.
Before an allocation investment and structure resolution can be made, arrangements for disposal or processing of the allocation concentrate will be required. Obtaining moderate terms for the extraction of Waterberg concentrate from an existing smelter/refinery in South Africa is the preferred option and discussions with those parties are ongoing.
In addition to seeking moderate terms for the extraction of Waterberg concentrate from an existing smelter/refinery in South Africa, the Company will also have to seek alternatives. The NI 43-101 Final Feasibility Study Technical Report for the Waterberg Project titled “Waterberg Project Final Feasibility Study and Mineral Resource Update, Bushveld Complex, South Africa” dated October 4, 2019, stated that “additional smelting capacity would possibly require an industry structure to be able to process the Waterberg flotation concentrate and other potential Platreef miners. “The Company is comparing the economic feasibility of building a matte furnace and base steel refinery in South Africa, with or without partners, to process Waterberg concentrate. A mate furnace and base steel refinery is envisaged as described above as a separate company from Waterberg JV Co. . which can also offer fair concentrate procurement terms in the market to Waterberg JV Co. and, in all likelihood, other PGM miners. Discussions with potential partners and investors are ongoing.
The company is also comparing the economic feasibility of building a mate furnace and base steel refinery outside South Africa to process Waterberg concentrate. Working with a potential spouse in a jurisdiction where electricity and water are cheaper, the company conducted a negotiation. Outside of examination it indicates that the savings in electricity and water particularly offset the cost of transporting more concentrate. Before the concentrate could be exported from South Africa, official government approval would be required. Further studies are ongoing.
As the world seeks to decarbonize and seek answers to climate change, the adoption of battery-electric cars is expected to reduce long-term demand for PGMs used in autocatalysis. Exclusive PGM houses as resistant catalysts are being implemented in various technologies as imaginable answers. for more effective energy production and storage, which can create a new demand for PGMs. The company’s battery generation initiative through Lion with his spouse Anglo represents one such new opportunity in lithium battery studies and innovation. The investment in Lion creates vertical integration perspectives with a broader commercial market progression strategy to bring to market new technologies using palladium and platinum. CRF studies and progression efforts on behalf of Lion continue. of Lion’s studios is expanding.
Environmental, Social and Governance
In November 2022, Platinum Group won its annual environmental, social and governance (“ESG”) disclosure report from Digbee Ltd. (“Digbee”), a UK-based company that has developed a popular ESG disclosure framework for the mining sector. providing a set of prospective frameworks of adequate length against which they can credibly disclose, track, benchmark and perform ESG. Digbee ESG was developed in consultation with mining corporations, ESG specialists and capital providers and is backed by leading monetary institutions, generation mining corporations and other industry stakeholders. Digbee’s reporting framework is aligned with the global popular ones, adding the Equator Principles.
Regulator
In addition to the discussions contained in this press release, the reader is encouraged to also review the Company’s disclosure, the heading “Risk Factors” in the Company’s Annual Information Form for the year ended August 31, 2022 (“Annual Information Form”) as filed with Canadian securities administrators, and the annual report on Form 40-F for the year ended August 31, 2022. August 2022 (“Form 40-F”) as filed with the U. S. Securities and Exchange Commission. U. S. Securities and Banking (“SEC”).
Qualified person
Rob van Egmond, P. Geo. , the Company’s consulting geologist and former employee, is an Independent Qualified Person as explained in National Instrument 43-101 Disclosure Standards for Mineral Projects (“NI 43-101”). van Egmond has reviewed, validated and approved the clinical and technical data contained in this press release and has previously visited the Waterberg Project site.
About Platinum Group Metals Ltd. and the Waterberg Project
Platinum Group Metals Ltd. es the operator of the Waterberg Project, an underground palladium and platinum deposit located in South Africa. Waterberg’s assignment was learned through Platinum Group and is being developed jointly with Implats, Mnombo, JOGMEC and Hanwa.
On behalf of the Council of
Platinum Group Metals Ltd.
Frank R. HallamPresident, CEO and Director
For information, contact: Kris Begic, VP, Corporate DevelopmentPlatinum Group Metals Ltd. , VancouverTel: (604) 899-5450 / Toll Free: (866) 899-5450www. platinumgroupmetals. net
Disclosure
TSX and NYSE American have not reviewed and do not satisfy any duty for the accuracy or adequacy of this press release, which is ready through management.
This press release includes forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of United States securities laws (collectively, “forward-looking statements”). Forward-looking statements are sometimes referred to by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may”, “plan”, “assume” and similar expressions, or are , which by their nature refer to long-term events. All statements that are not statements of past fact are forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the good fortune of the Company’s goal of moving the Waterberg Project to a progression and structure decision, the final touch of various stages of the program. of paints, updated planned DFS, Waterberg allocation plan and progression and potential benefits and effects thereof, Waterberg allocation mining funding and progression, potential publicity opportunities for funding of the progression of mining and extraction, financing and extraction of concentrates Progression of the Waterberg assignment, duration and load of the Waterberg assignment, economic feasibility of constructing a Waterberg kill kiln, imaginable implementation of strategies and effects on the water consumption, working with local communities, emergence of new battery technologies and the potential benefits of using palladium. and platinum, publicizing it, and Lion’s progress in next-generation battery technology, PGM’s market demand outlook, Lion’s and FIU’s good fortune studios and development efforts, studio expansion de Lion in more battery chemicals, the Company’s ability to access greater capital markets due to its ESG practices, the effects of the Company’s infill drilling program at the Waterberg Project and other long-term plans and expectations of the company. Although the Company believes that the forward-looking statements contained in this press release are reasonable, it cannot guarantee that the expectations and assumptions contained in those statements will prove to be correct.
The Company advises investors that the Company’s prospects are not promises of functionality or long-term effects and that the actual effects may differ slightly from those of the prospects due to a variety of points, adding imaginable adverse effects due to the outbreak. of COVID-19, the Company’s ability to generate sufficient cash flow or raise more capital, and to meet the terms of any new borrowing; other financing needs; and possibly any new debt would be guaranteed which may also result in the loss of any assets pledged through the Company; the Company’s history of losses and negative cash flows; Company houses cannot be incorporated into the production of advertising; the uncertainty of the estimated production, progression plans and load estimates for the Waterberg Project; differences between actual and estimated mineral reserves and mineral resources, between actual and estimated progression and operating charges, between actual and estimated steel deposits, and between estimated and actual production; fluctuations in the relative values of the US dollar, rand and Canadian dollar; volatility of the value of steel; the uncertainty of choosing investment resources for Waterberg JV Co. ; the Company would possibly become a subject of United States investment company law; the inability of the Company or other shareholders to fund their pro rata percentage of Waterberg’s allotment investment legal liabilities; any dispute or disagreement with other shareholders of Waterberg JV Co. or Mnombo; the Company’s ability to retain its key control and qualified and experienced personnel; conflicts of interest; litigation or other administrative proceedings filed against the Company; actual or alleged violations of government processes or times of fraud, bribery or corruption; exploration, progression and mining threats and the inherently harmful nature of the mining industry, and the threat of insufficient insurance or lack of ability to unload insurance to cover those and other threats and uncertainties; mining and asset name threats, adding a faulty name to mining claims or assets; adjustments in national and local laws, taxes, controls, regulations, and political or economic progressions in Canada and South Africa; equipment shortages and the Company’s ability to obtain mandatory access rights and infrastructure for its mining homes; environmental regulations and the ability to discharge and maintain mandatory permits, adding environmental authorizations and water use licenses; excessive festival in the mineral exploration industry; delays in the discharge or failure to discharge mandatory permits for existing or long-term operations or failure to comply with the terms of such permits; threats to do business in South Africa, including, but not limited to, labor, economic and political institutions and possible adjustments and breaches of legislation; the Company’s common inventory may be delisted from the NYSE American or TSX if it does not meet applicable directory requirements; and other threat points outlined in the Company’s most recent Annual Report on Form 40-F, Annual Information Form, and other filings with the SEC and Canadian securities regulators, possibly viewable at www. Arraysec. gov and www. sedar. com, respectively. The proposed amendments to the South African Minerals Act, if implemented as proposed, would have an adverse effect on the Company’s business and its potential interest in the Projects. Any forward-looking statements speak only as of the date it is made and, except as required by applicable securities laws, the Company disclaims any legal purpose or responsibility to update any forward-looking matrix, whether due to new information, events or Long-term effects. in another way.
The technical and clinical data contained herein have been prepared in accordance with NI 43-101, which differs from the criteria followed through the SEC. Accordingly, the technical and clinical data contained herein, aggregating any estimates of mineral reserves and mineral resources, would not possibly be comparable to data disclosed through U. S. companies subject to SEC disclosure requirements.
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