SOUTH AFRICA – Platinum Group Metals of Vancouver has closed a US$20-million bought deal financing. The company issued approximately 15.4 million common shares at a price of US$1.30 per share. BMO Capital Markets was the sole underwriter.
The concentrator at the Maseve mine.
Platinum Group began commissioning the Maseve palladium-platinum mine and mill last year in the Bushveld. The proceeds will be used in part for underground development and production ramp-up of the underground mine (formerly known as the Waterberg joint venture). Some of the proceeds will also be used for working capital, to repay a US$2.5 million advance, and for general corporate purposes.
Reserves and resources are divided into Merensky and UG2. Merensky contains proven and probable reserves of 17.5 million tonnes with grades of 2.94 g/t platinum, 1.24 g/t palladium, 0.18 g/t rhenium, and 0.23 g/t gold. UG2 contains proven and probable reserves of 14.9 million tonnes grading 2.01 g/t platinum, 0.83 g/t palladium, 0.32 g/t rhenium, and 0.03 g/t gold.
The mill is targeted to produced 185,000 oz. of all four metals this year. It will ramp up to steady state production of 250,000 oz./year for the first phase.
The August 2015 technical report, available at www.PlatinumGroupMetals.com, has detailed information about the Maseve project.