Canadian firm Platinum Group Metals (PTM) is looking to secure an additional stake in Project One, near Rustenburg, from Wesizwe.

A transaction in April last year saw Wesizwe gain full ownership of its Frischgewaagd-Ledig project, also granting PTM the option to increase its stake to 74 per cent, Mining Weekly reports.

After depositing R408 million (£35 million) into an escrow account, PTM has secured an additional 19.25 per cent in Project One, which shares boundaries with Wesizwe’s Frischgewaagd-Ledig project, Royal Bafokeng Platinum’s Styldrift project and the Bafokeng Rasimone mine.

The cash in the escrow account will be used to pay for Wesizwe's 26 per cent contribution to the development of the project.

It follows PTM's announcement in December that it has earmarked an initial construction budget of $100 million (£62 million) for Project One, on which work has already begun.

In the same month, the company was added to the S&P/TSX Global Mining Index.

Source:


Platinum Group exercises option to secure additional stake in SA project (03/02/11)

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