TSX- and NYSE-listed Platinum Group Metals (PTM) has decided to increase the amount of shares on offer in its latest private placement to 3.2-million shares for gross proceeds of $4-million.
The company on Thursday initially announced a placement of 1.6-million shares for $2-million.
The company expects its biggest shareholder Hosken Consolidated Investments to participate in the placement.
PTM will use the proceeds for its share of costs on the Waterberg project, in South Africa’s Limpopo province, and for working capital purposes.
PTM is the operator of the underground palladium, platinum, gold and rhodium project, for which a definitive feasibility study was published in September.
Currently, PTM owns 50% of the Waterberg joint venture, while Impala Platinum owns 15%, Hanwa owns 9.7%, Japan Oil, Gas & Metals National Corporation owns 12% and the balance is held by Mnombo Wethu consultants.
Implats may elect to exercise a purchase and development option to increase its stake to 50.01%.