Dual-listed Platinum Group Metals (PTM) has closed a nonbrokered private placement with Hosken Consolidated Investments (HCI), an existing major shareholder of the company, for gross proceeds of $1.3-million.
The company has issued an aggregate 1.11-million common shares to Deepkloof, a subsidiary of HCI, at a price of $1.17 per common share.
On a nondiluted basis and after giving effect to the private placement, HCI’s ownership percentage has increased from 20.05% to 22.60% of the company’s issued and outstanding common shares.
The company did not pay any finder’s fees in connection with the private placement.
The company intends to use the net proceeds of the private placement for its share of remaining costs to complete a definitive feasibility study that is under way at the Waterberg platinum/palladium project in South Africa, and for general corporate and working capital purposes.
The Waterberg project is described on the PTM website as a shallow, bulk-mineable project with growth potential.
Major Johannesburg Stock Exchange-listed platinum mining and marketing company Implats bought 15% of the project for $30-million in October 2017, with an option for a $166-million acquisition and development commitment.