Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG) announces the closing of its previously announced marketed public offering of units. The Company has issued 117,453,862 Units at a price of US$0.15 per Unit for gross proceeds of approximately US$17.62 million, which includes the issuance of 3,453,862 Units pursuant to the partial exercise of an over-allotment option granted to the underwriters of the Offering. Each Unit consisted of one common share of Platinum Group Metals and one common share purchase warrant of Platinum Group Metals. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of US$0.17 for a term of 18 months from the date of closing of the Offering. Upon closing of the Offering, the Warrants began trading on the Toronto Stock Exchange under the symbol “PTM.WT.U”.
The net proceeds of the Offering, before expenses, were approximately US$16.56 million. The Company intends to use the net proceeds of the Offering: (i) towards repayment of a loan facility and production payment termination fees due to Liberty Metals & Mining Holdings, LLC; and (ii) for general corporate and working capital purposes.
BMO Capital Markets acted as sole book-running manager for the Offering. Leede Jones Gable Inc. and Roth Capital Partners acted as co-managers for the Offering. Roth Capital Partners only executed offers and sales outside of Canada.
For the purposes of approval by the Toronto Stock Exchange, the Company has relied on the exemption in Section 602.1 of the TSX Company Manual, which provides that the TSX will not apply its standards to certain transactions involving eligible interlisted issuers on a recognized exchange, such as the NYSE American.
The Offering was conducted pursuant to the Company’s effective shelf registration statement on Form F-10 (the “Form F-10”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and a corresponding Canadian base shelf prospectus filed with the securities regulatory authority in each of the provinces of Canada, except Quebec. A prospectus supplement relating to the Offering was filed with the SEC and with the securities regulatory authority in each of the provinces of Canada, except Quebec.
A copy of the prospectus supplement and base shelf prospectus relating to the Offering in Canada may be obtained by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 4312 or by email at firstname.lastname@example.org. A copy of the prospectus supplement and base shelf prospectus relating to the Offering in the United States may be obtained by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800) 414-3627 or by email at email@example.com.
In addition, the issuance of common shares upon exercise of the Warrants under the United States Securities Act of 1933, as amended, has been registered in the United States pursuant to the Form F-10, as supplemented by a prospectus supplement dated May 14, 2018 (together, the “U.S. Prospectus Supplement”). A corresponding prospectus supplement dated May 14, 2018 has been filed in the province of British Columbia to the final short form base shelf prospectus dated October 14, 2016 (together, the “Canadian Prospectus Supplement”). A copy of the U.S. Prospectus Supplement or Canadian Prospectus Supplement is available upon request from the Company’s Corporate Secretary, 788 – 550 Burrard Street, Vancouver, British Columbia V6C 2B5.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Platinum Group Metals Ltd.
Platinum Group is focused on, and is the operator of, the Waterberg Project, a bulk mineable underground deposit in northern South Africa. Waterberg was discovered by the Company.
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We acknowledge the [financial] support of the Government of Canada.