AMN - SOUTH AFRICA: Approval for Maseve mine sale

The South African Competition Tribunal has approved the transaction in which Royal Bafokeng Platinum Limited (RBPlat) will acquire a 100% equity interest in Platinum Group Metals Ltd's Maseve Investments 11 (Pty) Ltd, which owns the Maseve mine

The approval is subject to certain conditions, agreed to by RBPlats, focused on jobs in the transition of ownership.

Competition Tribunal approval is a key step forward in the planned transaction.

Platinum Group and RBPlat executed definitive agreements on November 23, 2017 to sell all of the rights and interests in Maseve in a transaction valued at approximately US$74 million.

RBPlat is to first acquire the concentrator plant and certain surface assets of the Maseve mine for payment of US$58 million in cash to Maseve, conditional on certain approvals and conditions precedent. Step 1 is expected to close in February 2018.  Step 2 will see RBPlat acquire 100% of the shares in Maseve and all shareholder loans owed by Maseve for an aggregate consideration equal to US$16 million.

The parties continue to work together in fulfilment of the remaining conditions precedent.

Step 2 of the transaction will require the approval of the Department of Mineral Resources and other conditions precedent, which are expected to be completed in mid-2018.

Platinum Group's proceeds from the Maseve sale transaction are to be used to repay the company’s secured lenders.

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