Platinum Group Metals Secures $1 Million Private Placement from Major Shareholder HCI
TL;DR
HCI to raise $1.01M in private placement at $1.26 per share, supporting Waterberg Project. 3.1% premium to VWAP.
HCI will own 26% after shares sale, subject to resale restriction and exempt from registration due to related-party status.
Funding for pre-construction at Waterberg Project in South Africa, advancing towards sustainable mining and economic growth.
HCI's $1.01M private placement showcases strategic investment in platinum group metals sector, driving innovation and market competitiveness.
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Platinum Group Metals Ltd. announced plans to raise approximately $1.01 million through a private placement of common shares, signaling continued strategic investment in its South African platinum and palladium project.
The company will issue 800,000 common shares at $1.26 per share to major shareholder Hosken Consolidated Investments Limited (HCI), representing a 3.1% premium to the five-day volume-weighted average price. Upon completion, HCI will maintain a 26% ownership stake in the company.
The capital raised will primarily support pre-construction activities at the Waterberg Project, a significant bulk underground palladium and platinum deposit located in South Africa. The project is being jointly developed with Implats, Mnombo, and HJM, highlighting a collaborative approach to mineral resource development.
The private placement, subject to regulatory approval, demonstrates investor confidence in the company's strategic direction and the potential of the Waterberg Project. The shares will be subject to a four-month-plus-one-day resale restriction, and the placement was offered under exemptions to registration and shareholder approval requirements.
This investment could provide critical funding for advancing the Waterberg Project, potentially positioning Platinum Group Metals for future growth in the platinum group metals market. The capital infusion may accelerate project development and help the company navigate current market challenges in the mining sector.
Curated from InvestorBrandNetwork (IBN)
