Dual-listed Platinum Group Metals (PTM) intends to sell over 1.1-million common shares of the company to a major beneficial shareholder, Hosken Consolidated Investments (HCI), at $2.18 a share, to raise gross proceeds of $2.5-million.
The company intends to use the proceeds of the private placement for its share of pre-development costs on the Waterberg project, in South Africa; for partial debt repayment; and for general corporate and working capital purposes.
Closing of the private placement is subject to customary closing conditions, including stock exchange approvals.
The private placement will allow HCI to maintain a greater than 31% interest in the company.