Palladium: $2,376.55 +23.40
PLG-NYSE MKT: $2.26 +0.01
Platinum: $934.73 -8.92
PTM-TSX: $3.10 +0.12

Receive Updates

Your email: *
First Name:
Last Name:

Enter the code shown above.

Press Release Details

Platinum Group Metals Ltd., Anglo Platinum, and Africa Wide Form Platinum Exploration Joint Venture in South Africa''s Western Bushveld Region

Platinum Group Metals Ltd. (PTM-TSX.V), announces today the formation of a Joint Venture ("JV") with, Anglo American Platinum Corporation Limited ("Anglo Platinum") (AMS-JSE) and Africa Wide Mineral Prospecting and Exploration (Pty) Limited in compliance with South Africa''s recently enacted minerals legislation, that will pursue platinum exploration and development on combined mineral rights covering 67 square kilometres on the platinum-rich Western Bushveld Complex of South Africa.

"This JV is a logical consolidation of mineral rights for potential mining development and creates one of the larger assembled land positions on the Western Bushveld Complex, the source of most of the world''s platinum" said R. Michael Jones, President of PTM.

The JV will immediately provide for a 26% Black Economic Empowerment interest in satisfaction of the 10-year target set by the Mining Charter and newly enacted Minerals and Petroleum Resources Development Act. PTM and Anglo Platinum will each own an initial 37% working interest in the JV, while Africa Wide will own an initial 26% working interest. Africa Wide will work with local community groups in order to facilitate their inclusion in the economic benefits of the JV in areas such as training, job creation and procurement.

"North American venture capital companies with experience in mining are an ideal asset to assist Black Economic Empowerment companies in capitalizing on mining opportunities in this time of transition" said Mlibo Mgudlwa, President of Africa Wide.

PTM will be required to operate and fully fund the JV''s exploration program in the amount of Rand 35 million (approx. US$ 5.3 M; C$7.0 million) over the next five years. Minimum expenditures in year one in the amount of Rand 5 million are a firm commitment by PTM. Optional expenditures to maintain the JV in years two and three are also Rand 5 million and in years four and five amount to Rand 10 million in each year. After Rand 35 million in expenditures have been funded by PTM, the parties will fund their portion of further expenditures pro-rata based upon their working interest in the JV.

Once the JV completes a bankable feasibility study the respective interest of the parties will be adjusted to reflect their relative contribution of measured, indicated and inferred ounces determined in accordance with the South African SAMREC code. Each party will have the opportunity to contribute capital necessary, if so desired, to maintain their respective initial working interest in the JV. The JV agreement also provides a mechanism whereby Anglo Platinum may elect to become a "non-contributory participant" to the JV and by doing so would be subject to dilution.

The targets for exploration on the JV properties will be the Merensky and UG2 reefs of the Bushveld Complex. The potential to increase the size and confidence level of an estimated 3.72 million ounce inferred resource (9.1 million tonnes grading 5.69 grams per tonne 4 E''s platinum, palladium, rhodium, gold on the Merensky Reef and 15.0 million tonnes grading 4.25 g/t 4E, on the UG2 reef, SAMREC Code, Anglo Platinum Annual report 2003- to be confirmed by PTM under Canadian NI 43-101) on the combined JV properties is considered excellent by all members of the JV. The inferred resource calculation already includes estimated 30% to 50% geological losses. The exploration areas on the JV properties are adjacent to the separate BRPM joint venture, which incorporates an existing mine, formerly Anglo Platinum''s BRPM platinum mine, and the Styldrift property, contributed to the BRPM JV by the Royal Bafokeng Nation.

The Merensky and UG2 reefs have been intercepted on the JV properties in a number of drill holes outside of areas where resources have been defined to date. These areas require immediate follow-up drilling. Prospecting permits have been issued and drilling can commence immediately. The contributed properties offer areas likely to increase the size and confidence of the resource as they include the untested projected surface trace of the reefs.

PTM will contribute all of its interests in portions of the farms Onderstepoort 98JQ and Elandsfontein 102JQ. Anglo Platinum will contribute its interests in portions of the farms Koedoesfontein 94JQ, Elandsfontein 102JQ and Frischgewaagd 96JQ. A map of the new JV area is available on the PTM website

The JV Agreement described above has been approved by each of the parties, but remains subject to final due diligence by the parties and regulatory approval by stock exchange authorities in Canada and South Africa as well as the Competition Commissions of both South Africa and the European Union.

R. Michael Jones, P.Eng is acting as the Qualified Person, "QP" for Platinum Group Metals RSA Pty Ltd., a wholly owned subsidiary of PTM. He is registered with the Professional Engineers of Ontario, Canada. The Information included in this release is subject to due diligence and review for compliance with Canadian NI 43-101 standards.

PTM is based in Vancouver, B.C., Canada and has active exploration programs in Canada and South Africa. PTM holds significant mineral rights in the Northern and Western Bushveld Complex of South Africa. PTM is supportive of the initiatives of the government of South Africa in the Mineral Resources and Petroleum Development Act and Mining Charter.

PTM is the largest mineral rights holders in the area surrounding Canada''s only primary platinum and palladium mine near Thunder Bay, Ontario. PTM also has a separate active joint venture with Anglo Platinum at Agnew Lake, near Sudbury, Ontario, Canada.

On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
R. Michael Jones
President, Director
- 30 -

John Foulkes
Manager, Corporate Development
Platinum Group Metals Ltd.
toll free (866) 899-5450
phone (604) 899-5450

Erin Airton/Terry Foster
James Hoggan and Associates
(604) 739-7500

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 328 -- 550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.