Platinum Group Metals signs $20m financing agreement
Platinum Group Metals has signed an agreement to sell its common shares to BMO Capital Markets (BMO) on a bought deal basis.
The agreement has been signed to purchase 5.39 million common shares of Platinum at a price of $1.30 each for gross proceeds of approximately $20m.
Platinum Group intends to use net proceeds from the offering for different purposes, including underground development and production ramp-up of the Maseve Mine. In addition, funds will be used for working capital during start-up, repayment of the $2.5m from a prior advance under the company's credit agreement with a syndicate of lenders led by Sprott Resource Lending Partnership, as well as for general corporate purposes.
The company has granted BMO an option to purchase up to an additional 15% of the offering to cover over-allotments, and for any possible market stabilisation purposes. This is exercisable at the offering price for a period of 30 days following closure of the offering.
This offering is expected to close around 26 April and is subject to customary conditions, including approval of Toronto Stock Exchange and NYSE MKT.
Platinum Group is based in Johannesburg, South Africa and Vancouver, Canada. Its business is currently focused on the operation of the Project 1 Maseve platinum mine and the exploration and feasibility engineering on the newly discovered Waterberg platinum and palladium deposit, where it is the operator of the Waterberg JV Project with JOGMEC and Mnombo.