SOUTH AFRICA – Platinum Group Metals of Vancouver has raised US$110 million with which to advance its Western Bushveld joint venture (WBJV) platinum development. The money was raised by way of a bought deal financing agreement with a syndicate of underwriters led by BMO Capital Markets and GMP Securities.
The underwriters have agreed to buy 207.6 million common shares of Platinum group at a price of US$0.53 per share. They also have an over-allotment option to purchase up to an additional 15% on the same basis.
Platinum Group says it will apply the money toward phase two development at the WBJV platinum project 110 km northwest of Pretoria. The amount is expected to fund the mine development and mill construction through to completion next year. The company also arranged a US$40 million senior secured operating loan facility to complement the bought deal.
Platinum Group blamed poor market conditions that forced it to abandon a US$150 million previously announced offering of senior unsecured notes and common share warrants.
Details of the WBJV project are posted at PlatinumGroupMetals.net.