09/11/2012 01:18 EDT | Updated 11/11/2012 05:12 EST

Anglo American to buy the output of mine being built by Platinum Group Metals

VANCOUVER - Platinum Group Metals Ltd. (TSX:PTM) says a subsidiary of Anglo American Platinum Ltd. has exercised its right to purchase the concentrate that will be produced at its majority-owned platinum mine in South Africa.

Financial terms of the smelter off-take agreement with Anglo American's Rustenburg Platinum Mines weren't disclosed in Tuesday's announcement.

The Western Bushveld Project 1, which is anticipated to operate for more than 20 years, is under construction and first production is planned in 2014.

Platinum Group has a 74 per cent interest in Project 1, with the remainder owned by Wesizwe Platinum, a publicly traded subsidiary of Jinchuan Group of China.

Platinum Group operates out of Vancouver and Johannesburg.