Platinum Group Metals Ltd. said March 8 that Japanese trading firm Hanwa Co. Ltd. will acquire about a 9.76% stake in the Waterberg platinum group metal-copper-nickel joint venture in South Africa from JOGMEC.
The deal follows a public tender held Feb. 23 from which Japan's Hanwa emerged as the winning bidder, and the parties are now set to start negotiations over the terms of the acquisition. JOGMEC holds a 21.95% interest in Waterberg.
Apart from the Waterberg stake, the deal will also see Hanwa acquiring JOGMEC's right of first refusal to metal produced by Impala Platinum Holdings Ltd. from the Waterberg project. Implats in November 2017 completed the purchase of a 15% interest in Waterberg for US$30 million.
Under an agreement signed in October 2017, Implats also secured a right of first refusal for Waterberg concentrate off-take and an option to raise its project stake to 50.01% after US$166 million in payments and development commitments. Implats may exercise this option within 90 days after the completion of Waterberg's definitive feasibility study, which is expected in the first half of 2019.
Platinum Group Metals owns, directly and indirectly, a 50.02% interest in the Waterberg project.
