VANCOUVER, B.C., June 3, 2002 (PRIMEZONE) -- Platinum Group Metals Ltd. (TSX Venture Exchange:PTM) is pleased to announce that it has acquired the option to purchase 100% of two platinum properties covering 4,573 hectares in the Northern limb, or Platreef Area, of the Bushveld Complex. The Bushveld Complex is the large geological feature that hosts most of the world's platinum.
The first of the two groups is the War Springs Property located south directly along the Platreef contact, 17 kilometers from the currently producing Anglo PPRust Platinum Mine hosting more than 50 million ounces of PGE resources, and 10 kilometers south of the active large-scale drilling program of African Minerals Ltd. This property covers 2,396 ha. The prospective Platreef contact zone has been mapped to cross the property for more than 5 kilometers. This zone is not known to have been tested with a large-scale systematic drilling program previously. Applications for prospecting permits will be filed immediately to start surface work to target a drilling program of more than 5000 meters by PTM as soon as possible.
The second property, Tweespalk Property, is located approximately 25 kilometers north of the PPRust Mine along the Platreef contact. This property covers 2177ha and approximately 3km of the prospective contact and again applications will be filed to start work immediately.
A $1,000,000 Brokered Private Placement, previously announced will close with this acquisition.
The Contract provides the Option for PTM to Purchase 100% of the Mineral Rights at any time over three years. The agreement is with a Private Partnership that has brought together previously fragmented mineral rights. PTM has agreed to pay $2.50USD per hectare, $2.75 per hectare and $3.25 per hectare in the Prospecting fees to the mineral rights holders in years one, two and three. PTM can purchase the mineral rights for $475USD per hectare in year one, or $570USD per hectare in year two or $690USD per hectare in year three. If the mineral rights were purchased in year three the cost would be $1.6 million US for War Springs and 1.5 million US for Tweespalk. PTM has also agreed to pay a 1% Net Smelter Returns Royalty to the Mineral Rights holders subject to PTM's right to purchase the NSR at any time for $1,400,000USD. The Mineral Rights holders may require PTM to purchase the NSR upon the commencement of commercial production for $1,400,000USD.
GeoActiv Dynamic Geological Services will be paid a 5% finders fee by PTM on payments to the mineral rights holders when paid. GeoActiv is very experienced in platinum exploration and resource definition. GeoActiv is further engaged by PTM to pursue additional South African acquisitions.
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.