JOHANNESBURG (miningweekly.com) – TSX-listed mining company Platinum Group Metals (PTM) and South African black empowerment investment holding company Hosken Consolidated Investments (HCI) have agreed to amend the terms of a strategic investment.
PTM said on Friday that HCI had entered into an amended subscription agreement, on a private placement basis, for the purchase of 15.09-million units at a price of $0.15 per unit for gross proceeds of $2.26-million.
Each unit will consist of one common share and one common share purchase warrant, with each common share purchase warrant allowing HCI to purchase one further common share of the company at a price of $0.17 a share for a period of 18 months from the date of closing of the amended private placement.
The initial agreement, announced on May 4, involved the purchase of 16.77-million units at $0.19 each for gross proceeds of $3.19-million.
PTM also reported on Friday that Liberty Metals and Mining (LMM) had agreed to amended credit terms for an existing secured loan facility.
The company had to raise a minimum of $15-million in financings of subordinated debt, common shares and securities convertible into common shares before May 31. The first $12-million of gross proceeds from the required financing would be used to reduce indebtedness under the LMM facility.
If these conditions are satisfied, the LMM facility maturity date would be extended to October 31, 2019, a previous requirement to raise a further $20-million in subordinated debt and common shares before July 31, 2018 would be eliminated, and interest would continue to accrue and be capitalised until the maturity date.