Platinum and palladium project developer Platinum Group Metals (PTM) intends to, subject to regulatory approval, sell common shares of the company to existing major beneficial shareholder, Hosken Consolidated Investments (HCI), for gross proceeds of $2.5-million.
The company will use the net proceeds of the private placement for its share of pre-development costs on the Waterberg project in South Africa, as well as for partial debt repayment and general corporate and working capital purposes.
The Waterberg project is a bulk underground palladium, platinum, gold and rhodium deposit.
The private placement will allow HCI to maintain a greater than 31% interest in the company, which it held prior to an at-the-market offering announced by PTM on November 30.