Platinum Group Metals Ltd PTM:CA announced that it has closed its previously announced bought-deal equity financing of 61,000,000 common shares at $2.05 per share for aggregate gross proceeds of $125,050,000. Platinum Group intends to use approximately $60.1 million of the net proceeds as payment to a subsidiary company to increase its interest in projects in the Western Bushveld Complex of South Africa from 54.75% to 74%. The remaining proceeds of $47.77 million will be applied against the Company’s 74% share of an initial $64.56 million development program, and approximately $10 million will be reserved for general working capital purposes.
President R. Michael Jones said, “We are very pleased to be supported by a strong global syndicate of banks and our shareholders in order to move construction of a new platinum mine forward in the area at the centre of the world’s platinum production and several other new mine developments.”
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R. Michael Jones
by Ted Niles