VANCOUVER, B.C., Sept. 10, 2002 (PRIMEZONE) -- Platinum Group Metals Ltd. (TSX Venture Exchange:PTM) is pleased to announce that it has entered into an option joint venture agreement with Ledig Minerale Regte 909 JQ (pty) Ltd. ("Ledig Minerale"), a company that certain registered private mineral rights holders have transferred their rights into for the Ledig Farm Property near Sun City, South Africa (the "Property").
The Property is located in the western Bushveld Complex adjacent to the Styldrift Joint Venture, an active platinum development project postulated to be along the projected strike of the main UG2 and Merensky reefs.
In general, PTM can earn approximately a 50% interest in the divided shares of the Ledig Minerale farm Property. In detail, PTM may earn a 55% interest in the divided shares of the Property listed below by making cash payments of 40,000,000 Rand over 2 years and also completing work expenditures on the Property of R30,000,000 over two years. The Property includes 1,400ha of the Ledig Minerale farm comprised of 90% of two portions of 235ha, 70% of 462ha and 50% of 468ha. In order to receive the final cash payment Ledig Minerale must comply with all the conditions of the agreement. It is anticipated this will occur. PTM will have the role of operator and manager of the joint venture. The cash payments under the option agreement are R1,000,000 within 10 days of signing, followed by periodical payments amounting to R39,000,000 over a period of 2 years, subject to performance by Ledig Minerale of the agreed terms and conditions and satisfactory prospecting results. Exploration and development expenditures required to keep the agreement in good standing are; R5,000,000 in the first year, R15,000,000 in year 2, R10,000,000 in year 3. The agreement is subject to regulatory approval.
The agreement has the support of the local community. R. Michael Jones President of PTM said "We think that a strong working relationship between the local community, private mineral rights holders and a foreign mining company such as PTM is an exciting model for all of the stakeholders. PTM believes that innovative business approaches in South Africa can produce globally competitive commercial transactions and create real participation in projects for historically disadvantaged people and most importantly, involve the local community in the area of project. We look forward to being able to expand on this theme in all of our activities."
PTM is based in Vancouver BC, Canada and has active exploration programs in Canada and South Africa. The Company is the largest mineral rights holders in the area surrounding Canada's only PGE mine and has an active drilling joint venture in Sudbury Canada.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 800 - 409 Granville Street, Vancouver BC, Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330.