Platinum Group Metals Terminates Lender Mandate, Announces Launch of 150,000 Unit Offering

Platinum Group Metals (TSX:PTM) announced it plans to offer 150,000 units consisting of senior unsecured notes and common share purchase warrants. In a separate press release, the company reported it has terminated a mandate for a term loan facility that was announced in November 2013.

As quoted in the press release:

Each warrant will entitle the holder thereof to acquire one common share of the Company (a “Warrant Share”), have a strike price that will represent a 30% premium to the 15-day volume weighted average price calculated at the time of pricing the offering (based on the Company’s TSX listing) and have a three-year maturity; provided that the effective exercise premium of the Warrants shall not be less than 10% as calculated pursuant to Rule 144A(d)(3)(i) under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Company intends to use the net proceeds from the financing to fund the remaining planned construction and development costs of the WBJV Project 1 Platinum Mine in South Africa and for working capital purposes.

Click here to read the Platinum Group Metals (TSX:PTM) press release