Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) reports closing of the Company’s previously announced non-brokered private placement with Hosken Consolidated Limited an existing major shareholder of the Company, for gross proceeds of US$1.3 million. In connection with the Private Placement, the Company issued an aggregate of 1,111,111 common shares to Deepkloof Limited, a subsidiary of HCI, at a price of US$1.17 per common share.
On a non-diluted basis and after giving effect to the Private Placement, HCI’s ownership percentage has increased from 20.05% to 22.60% of the Company’s issued and outstanding common shares. The Company did not pay any finder’s fees in connection with the Private Placement.
The Company intends to use the net proceeds of the Private Placement for its share of remaining costs to complete a Definitive Feasibility Study now underway for the Waterberg palladium and platinum project (the “Waterberg Project”) and for general corporate and working capital purposes.
Securities issued 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.
HCI is a “related party” of the Company as defined under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101 but the Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 in connection with the Private Placement with HCI. The Company did not file a material change report more than 21 days before the expected closing date of the Private Placement as the Company wished to close the Private Placement on an expedited basis for sound business reasons.
About Platinum Group Metals Ltd.
Platinum Group is focused on, and is the operator of, the Waterberg Project, a bulk mineable underground palladium deposit in northern South Africa. Waterberg was discovered by the Company.
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