Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) has unveiled plans to raise approximately $1.01 million via a private placement of 800,000 common shares to Hosken Consolidated Investments Limited (HCI), a major shareholder. This strategic move, priced at $1.26 per share, marks a 3.1% premium over the five-day volume-weighted average price on NYSE American as of May 9. The funds are earmarked for pre-construction activities at the Waterberg Project in South Africa and to cover general corporate expenses. Post-transaction, HCI will retain a 26% stake in the company.
The share issuance awaits regulatory approval and is set to proceed under exemptions from registration and shareholder approval requirements, leveraging HCI's related party status. A four-month-plus-one-day resale restriction will be applied to the shares to adhere to securities regulations. The Waterberg Project, a significant underground palladium and platinum deposit, is a collaborative venture between Platinum Group Metals, Implats, Mnombo, and HJM. This investment underscores the collective commitment to propel the project's development and harness its mineral resource potential.
For more details on the Waterberg Project, visit https://www.platinumgroupmetals.net.
