A $195 million project finance loan to develop the Western Bushveld Joint Venture Project (WBJV) Project 1 platinum mine has been arranged by Platinum Group Metals.
The company announced it has entered into a new mandate letter with Barclays Bank PLC, Absa Corporate and Investment Bank, Caterpillar Financial SARL and Societe Generale Corporate & Investment Banking.
“Our near-term objectives are to complete the financing plan for the WBJV Project 1, and to continue to explore the scope and scale of the Waterberg Platinum discovery,” said R. Michael Jones, president and CEO.
Recent drilling on the Waterberg Extension Permits has added 4.7km to the confirmed F zone mineralised layer. On 10 November, a step-out hole, 17km north of the Waterberg deposit, intersected the Bushveld Complex geology. These holes open up considerable northward potential at Waterberg.
Construction on the WBJV Project 1 site continues at a moderated pace, with a freeze on new procurement contracts. The delay in the finalisation of project finance arrangements from plans announced and proposed earlier in 2013, including the project loan and delays in other funding, will likely cause a delay in the current target date of mid-2015 for commencement of concentrate sales from the mine.
Platinum Group will be working on a revised financial model for the revised loan mandate, and an updated project schedule will be provided when available.
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