Platinum Group Metals Ltd. (TSX: PTM (NYSE American: PLG) (“Platinum Group” or the “Company”) reports that the Company intends, subject to regulatory approval, to sell 1,146,790 common shares of the Company at price of US$2.18 each for gross proceeds of US$2.5 million (the “Private Placement”) to existing major beneficial shareholder, Hosken Consolidated Investments Limited (“HCI”).
The Company intends to use the net proceeds of the Private Placement for its share of pre-development costs on the Waterberg Project in South Africa, partial debt repayment and general corporate and working capital purposes. Closing of the Private Placement is subject to customary closing conditions, including stock exchange approvals.
The Company announced an At-The-Market Offering (“ATM”) (in the USA only) of common shares on September 4, 2020. As of October 7, 2020, the Company had sold in the ATM 2,016,065 common shares at an average price of US$2.18 per share. As of October 7, 2020, the Private Placement will allow HCI to maintain a greater than 31% interest in the Company, as it held prior to commencement of the ATM.
Securities purchased pursuant to the Private Placement may not be traded for a period of four months plus one day from the closing of the Private Placement. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933 (the “Act”), as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of such Act.
The Company intends to rely on the exemption for “Eligible Interlisted Issuers” under Section 602.1 of the TSX Company Manual in connection with the listing of the common shares on the TSX under the Private Placement.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator and majority owner of the Waterberg Project, a bulk underground palladium, platinum, gold and rhodium deposit located in South Africa. An Independent Definitive Feasibility Study for the Waterberg Project was approved by Waterberg JV Resources Pty Ltd. (“Waterberg JV Co.”), the project joint venture company, on December 5, 2019.
The Waterberg Project was discovered by Platinum Group and is being jointly advanced with the shareholders of Waterberg JV Co., being Platinum Group, Impala Platinum Holdings Ltd. (“Implats”), Japan Oil, Gas and Metals National Corporation, Hanwa Co. Ltd. and Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”). In 2019 the Company founded Lion Battery Technologies Inc. in partnership with Anglo American Platinum Limited to support the use of palladium and platinum in lithium battery applications.