Year End 2008 Financial Results
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Dec 03, 2008 12:35AM
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December 2, 2008 |
Platinum Group Reports Year End 2008 Financial Results |
VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwire - Dec. 2, 2008) - Platinum Group Metals Ltd. (TSX:PTM)(NYSE-A:PLG) ("Platinum Group") announces the publication of the Company's audited financial results for the year ended August 31, 2008. For complete details of the August 31, 2008 financial statements and Management's Discussion and Analysis please see the Company's filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). The Company's cash position at August 31, 2008 was $1.8 million. At November 30, 2008 the Company's cash position was approximately $7.65 million after the completion of a non-brokered private placement for 4,910,470 units at a price of $1.55 per share which closed in early October. The Company's cash is invested with the Royal Bank of Canada in guaranteed investment certificates or in a current account. All amounts herein are reported in Canadian dollars unless otherwise specified. The Company also held marketable securities at year end with a market value of $1.1 million. Accounts receivable at year end totalled $1,036,134 while accounts payable amounted to $2,875,761. Accounts receivable were comprised primarily of value added taxes repayable to the Company in Canada and in South Africa while accounts payable were due mostly for surface rights acquisition, drilling, sampling, geophysical and engineering work conducted on the Western Bushveld Joint Venture ("WBJV"). Total global exploration and engineering expenditures for the Company's account in fiscal 2008, including the Company's share of WBJV expenditures, totaled $6,733,094 (2007 - $4,531,533), and of this $6,132,281 was for the WBJV (2007 - $3,775,890) and $600,813 was for other exploration (2007 - $755,643). Total WBJV expenditures during fiscal 2008 by all Joint Venture partners totaled $17,359,357 (2007: $10,497,472). The Company's loss for the year ended August 31, 2008 amounted to $5.09 million or $0.08 per share as compared to $6.76 million or $0.12 per share for the prior year. The 2008 loss includes $580,128 as a non-cash charge for Stock Based Compensation ($1.49 million for 2007). Also included is a charge for the write off of mineral property acquisition and deferred exploration costs of nil ($1.32 million for 2007). General overhead and administration costs for 2008 amounted to $5.18 million ($4.38 million for 2007) before interest income earned of $243,339 ($434,949 for 2007). The increase in administrative costs in 2008 is due to increased regulatory costs for compliance with Sarbanes-Oxley legislation in the USA and Multilateral Instrument 52-109 in Canada, support costs related to the Company's definitive feasibility study published on July 7, 2008 and the cost of strategic and legal advisors. As Operator the Company delivered a Positive Feasibility Study for Project 1 of the WBJV to the partners on July 1, 2008. Summary results of the study were published in a news release by the Company dated July 7, 2008. The feasibility study will be used for a project build decision and if implemented the Company will need to complete project financing for its share of capital costs and expand its capabilities as operator. Permit applications are in process. During 2008 the Company raised funding of $1,487,500 by issuance of 850,000 shares for the exercise common share purchase warrants and $821,824 by issuance of 760,500 shares for the exercise of stock options. The Company's key project is its interest in the WBJV, a platinum exploration and development project on combined mineral rights covering approximately 72 square kilometres on the Western Bushveld Complex of South Africa. On September 2, 2008 the Company announced in a news release its agreement to a term sheet with Anglo Platinum and Wesizwe Platinum to consolidate and rationalize the WBJV. Under the terms Platinum Group will control 74% of the WBJV Projects 1 and 3 and Wesizwe will control 100% of Project 2 and 26% of Projects 1 and 3. The term sheet is subject to regulatory and other approvals and the completion of definitive agreements, which are being finalized at this time. About Platinum Group Metals Ltd. Platinum Group is based in Vancouver BC, Canada and Johannesburg, South Africa. Platinum Group has a management team in both Canada and South Africa, which have successful track records of more than 20 years in exploration, mine discovery, mine construction and mine operations. The Company was formed in 2000 and is focused on the development of platinum operations. It holds significant mineral rights in the Northern and Western Bushveld Igneous Complex of South Africa. Platinum Group is also a significant mineral rights holder in the area surrounding Canada's only primary platinum and palladium mine near Thunder Bay, Ontario Canada. On behalf of the Board of Platinum Group Metals Ltd. Frank R. Hallam, Chief Financial Officer and Director |