The syndicate, led by BMO Capital Markets, will buy the dual-listed platinum development company’s shares at a price of $1.46 per common share for approximately US$25 million.
Platinum Group Metals has granted the underwriters an option, exercisable at the offering price for a period of 30 days, to purchase up to an additional 15% of the offering to cover over-allotments, if any, and for market stabilisation purposes. The offering is expected to close on 31 January 2017 and is subject to customary closing conditions including TSX and NYSE approvals.
Platinum Group Metals intends to use the net proceeds of the offering for underground development and production ramp-up of the Maseve mine; working capital during start-up; and for general corporate purposes.
The offering is being made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) and a corresponding Canadian base shelf prospectus filed with the securities regulatory authority in each of the provinces of Canada, except Quebec. A prospectus supplement relating to the offering has also been filed with the SEC and with the securities regulatory authority in each of the provinces of Canada, except Quebec.
Platinum Group Metals’ business is currently focused on the operation of the Project 1 Maseve platinum mine and the exploration and feasibility engineering on the newly discovered Waterberg platinum and palladium deposit where it is the operator of the Waterberg JV Project with JOGMEC and Mnombo.