Strategic Investment in the Waterberg Development Project
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
(“Implats” or “the Group”)
STRATEGIC INVESTMENT IN THE WATERBERG DEVELOPMENT PROJECT
Implats today announces that it has entered into definitive agreements with Platinum Group Metals Ltd
(“PTM”), Japan Oil, Gas and Metals National Corporation (“JOGMEC”) and Mnombo Wethu Consultants Pty
Ltd (“Mnombo”) to acquire a minority interest in the Waterberg development project (“Waterberg”), with
an option to acquire majority ownership of the project following completion of a definitive feasibility study
Located in Limpopo on the northern limb of the Bushveld complex, Waterberg represents a large scale
platinum group metal (“PGM”) resource with an attractive risk profile given its shallow nature. This
facilitates fully mechanised production with the potential for the project to have amongst the lowest
operating costs in the PGM sector.
Under the terms of the relevant agreements Implats, subject to various conditions precedent, will pay
US$30 million in cash to acquire a 15% shareholding in the project from PTM and JOGMEC. Implats will
then be closely involved with the DFS process, which is intended to examine alternative options to establish
a preferred development path for the project.
Implats will have 90 business days following approval of the DFS to determine whether it wishes to exercise
its option to acquire control of the project, and a further 90 business days to confirm acceptable financing
arrangements. Subject to any necessary adjustments, Implats would obtain a 50.01% shareholding by
purchasing an additional 12.195% equity interest from JOGMEC for US$34.8 million and by contributing
US$130.0 million into Waterberg in return for an additional 22.815% equity interest. This capital will be
contributed as required in order to fund the development of the project, which would be managed by
Implats. The parties have also reached agreement to ensure there will be participation by appropriately
broad-based empowerment groupings in the Waterberg project.
Nico Muller, CEO of Implats, commented “We have made it a priority to increase Implats’ strategic
optionality and this investment represents an important step to create the potential to develop a
significant, lower cost, lower risk resource. We look forward to working with PTM, JOGMEC and Mnombo
on the feasibility study process.”
The transaction falls below the categorisation threshold in terms of the JSE Limited Listings Requirements.
T: +27 (0) 11 731 9013/43
M: +27 (0) 82 809 0166
T: +27 (0) 11 731 9033/43
M: +27 (0) 82 498 3608
16 October 2017
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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