Platinum Group Metals Secures Loan, Cancels $150 Million Note Offering

Platinum Group Metals (TSX:PTM, NYSE MKT:PLG) announced that it has cancelled a private placement seeking to raise $150 million for its WBJV project which is targeted for production in the fourth quarter of 2015. In a separate press release, the company says it will take a $40 million loan from Sprott Resource.

According to the press release:

The Company will be obligated to make certain payments to the Lender, including (a) a bonus payment in the amount of US$1,500,000, being 3.75% of the principal amount of the Facility, payable in common shares of the Company issued at a deemed price per share equal to that in the next public offering of common shares of the Company; (b) a draw down payment to the Lender equal to 2% of the amount being drawn down from time to time under the Facility, payable in common shares issued at a deemed price equal to the volume weighted average trading price of the common shares on the TSX for the ten trading days immediately prior to the draw down request; and (c) a structuring fee comprised of a cash payment in the amount of US$100,000, payable concurrently with the execution and delivery of the Term Sheet; and d) a standby fee payable in cash equal to 4% per annum, post-closing of the un-advanced principal amount of the Facility.

The Facility is planned to be available at the delivery and sale of first commercial concentrate from the WBJV Project 1 targeted for fourth quarter 2015.

Click here to read the Platinum Group Metals Ltd. (TSX:PTM,,NYSE,MKT:PLG) press release