JOHANNESBURG (miningweekly.com) – Toronto-listed Platinum Group Metals (PTM) has terminated the mandate for a term loan facility entered into with a syndicate of lenders and announced on November 11, 2013.
The group said, at the time, that Barclays Bank, Absa Corporate and Investment Bank, Caterpillar Financial and Societe Generale Corporate & Investment Banking had agreed to use “commercially reasonable” efforts to arrange a new project loan facility for up to $195-million to continue development of PTM’s Project 1 platinum mine, in the Waterberg.
The company also announced that it intended to offer 150 000 units, comprising $150-million senior unsecured notes and the right for noteholders to receive an aggregate of 55.2-million common share purchase warrants.
Each warrant would entitle the holder thereof to acquire one common share of the company, called a “warrant share”, have a strike price that would represent a 30% premium to the 15-day volume weighted average price calculated at the time of pricing the offering and have a three-year maturity.
This was provided that the effective exercise premium of the warrants would not be less than 10%.
PTM intended to use the net proceeds from the financing to fund the remaining planned construction and development costs of the Project 1 mine and for working capital purposes.