Platinum Group Announces US$110-million Agreement with Syndicate of Underwriters

Platinum Group Metals Ltd. (TSX:PTM) and an association of underwriters led by BMO Capital Markets and GMP Securities LP have entered into an agreement under which the underwriters have agreed to buy on a bought-deal basis 207,600,000 common shares at a price of US$0.53 per common share for gross proceeds of US$110,028,000. Platinum Group will utilize the net proceeds of the offering to fund Phase 2 development at the WBJV Project 1 platinum mine.

As quoted in the press release:

The net proceeds of the Offering will be used to fund Phase 2 development at the WBJV Project 1 platinum mine. The net proceeds of the Offering, together with the Company’s unrestricted cash on hand, is expected to be sufficient to fully fund the completion of mill and concentrator construction at the WBJV Project 1 platinum mine. Together with the previously announced Project 1 Senior Secured Operating Facility, the Company believes it has sufficient funds to complete ‘peak funding’ needs at Project 1, to fund continued exploration of the Waterberg Projects and provide for ongoing working capital.

Click here for the Platinum Group Metals Ltd. (TSX:PTM) press release.