Platinum Group Metals Secures $1.01 Million Private Placement for Waterberg Project Development
TL;DR
HCI to raise $1.01M in private placement at $1.26 per share, supporting Waterberg Project. 3.1% premium to VWAP.
HCI will own 26% after shares sale, subject to resale restriction and exempt from registration due to related-party status.
Funding for pre-construction at Waterberg Project in South Africa, advancing towards sustainable mining and economic growth.
HCI's $1.01M private placement showcases strategic investment in platinum group metals sector, driving innovation and market competitiveness.
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Platinum Group Metals Ltd. has announced plans to raise approximately $1.01 million through a private placement of 800,000 common shares with major shareholder Hosken Consolidated Investments Limited. The share placement, priced at $1.26 per share, represents a 3.1% premium to the five-day volume-weighted average price on NYSE American as of May 9. This strategic financing arrangement underscores the ongoing commitment from existing stakeholders to support the company's development objectives.
The proceeds from this private placement will be allocated to support the company's pre-construction activities at the Waterberg Project in South Africa and address general corporate needs. This funding injection comes at a critical juncture for the project's advancement timeline. Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, preserving the existing shareholder structure while providing essential capital for operational requirements.
The proposed share issuance is subject to regulatory approval and will be executed under exemptions to registration and shareholder approval requirements, given HCI's status as a related party. The shares will be subject to a four-month-plus-one-day resale restriction, ensuring compliance with securities regulations. This structured approach to financing demonstrates the company's adherence to regulatory frameworks while efficiently securing necessary capital.
The Waterberg Project, a bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI. This strategic investment highlights the ongoing collaborative efforts in advancing the project's development and potential mineral resource extraction. The private placement represents a significant vote of confidence from a major shareholder in the project's long-term viability and the company's ability to execute its development strategy effectively.
Curated from InvestorBrandNetwork (IBN)
