TORONTO (miningweekly.com) – TSX- and Amex-listed Platinum Group Metals (PTM) will sell shares and warrants to raise about C$35-million in an overnight marketed offering, and will give the underwriters an overallotment option to increase the offering by another 15%.

The offering will be of units comprising one share and one-half of a share-purchase warrant.

The company plans to use the funds raised to settle payments to platinum giant Anglo Platinum (Angloplat), as part of an agreement to restructure the firms' Western Bushveld Joint Venture (WBJV), in South Africa, as well as for early work with potential contractors and suppliers of water and power.

Wesizwe Platinum, PTM and Angloplat announced in September last year that they had agreed to a restructuring of the JV, giving PTM the right to buy an effective 74% of the WBJV projects one and three, with Wesizwe left holding the balance, as well as 100% of project two.

Angloplat will sell its 37% holding in the WBJV to Wesizwe for a 26,5% stake in the smaller company, and PTM will receive an additional 37% stake in projects one and three from Wesizwe, in exchange for PTM's interest in project two (valued at R376,9-million) plus a cash payment.

An equalisation payment to Angloplat by PTM under the original WBJV agreement will become due on the final government approval and transfer of the property interests. This payment currently stands at about R205-million, or C$28-million.

PTM expects its offering to close on or about June 19.

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