Platinum Group Metals, the TSX-listed platinum exploration company, has announced that its 74% owned operating company, Maseve Investments, has executed a binding life of mine concentrate off-take agreement for the WBJV Project 1 Platinum Mine (Project 1), with Rustenburg Platinum Mines (RPM), a wholly owned operating subsidiary of Anglo American Platinum.Platinum Group Metals advised that the off-take agreement will begin on the initial delivery of concentrate from project 1 and covers Merensky and UG-2 ores. It is planned that the concentrate will be delivered to the smelter nearby, about 40 Km to the south-east, in the city of Rustenburg. The company noted that Maseve will sell all of its concentrate to RPM for the life of mine and RPM shall be required to purchase and take delivery of all concentrate in accordance with the agreement. The agreement provides, as is customary, for a certain stipulated quality of concentrate to be maintained and for concentrate to be delivered to other locations in the case of smelter maintenance.
“We are pleased to continue our long term positive relationship with Anglo American Platinum, the largest producer of platinum in the world. This is an important material contract for Project 1. It is fitting that we have concluded this contract as we start our surface stockpile of Merensky ore for our mill and concentrator planned for start-up at the end of 2014,” said Platinum Group Metals‘ CEO and president Michael Jones.The agreement follows a competitive tender process for the off-take and the exercise of a first right of refusal by RPM. Platinum Group Metals pointed out that the agreement provides for a standard discount to metal pay-ability and customary penalties for unwanted elements.