Platinum Group closes $29.6 million financings, establishes US$20 million credit facility and repays existing US$43 million credit facility

21 August 2019

On Aug. 21, 2019, Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) ("Platinum Group")  closed a bought deal financing with BMO Capital Markets in the United States, under which it sold 8,326,957 of its common shares by way of public offering for gross proceeds of approximately US$10.4 million.

In addition, Platinum Group closed the sale by way of private placement of 7,575,758 common shares to Liberty Metals & Mining Holdings, LLC for gross proceeds of US$10.0 million and 6,940,000 common shares to Deepkloof Limited, a subsidiary of Hosken Consolidated Investments Limited, for gross proceeds of approximately US$9.2 million.

Platinum Group used a portion of the proceeds of the public offering and the private placements, together with a US$20 million advance under its new credit agreement with Sprott Private Resource Lending II (Collector), LP, and the other lenders party thereto, to repay its secured loan facility with Liberty Metals & Mining Holdings in full. Platinum Group intends to use the remaining net proceeds for working capital and general corporate purposes.

Platinum Group is focused on, and is the operator of, the Waterberg Project, a bulk mineable underground palladium and platinum deposit in South Africa.

Gowling WLG advised Platinum Group with respect to Canadian securities law matters related to the public offering, private placements and credit facilities with a team that included Daniel Allen, Brett Kagetsu and Raymond Ong (Canadian securities law) and Brent Kerr (Canadian tax disclosure).


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