Platinum Group Metals has closed its public offering of 22 230 000 shares, which the company offered at a price of $1.80 per share.
A syndicate led by BMO Capital Markets,which also included RBC Capital Markets, acted as the underwriters and agreed to buy the shares on a bought deal basis.
The offering’s gross proceeds of $40.014 million will be used for underground development and the ramp up of production at the Maseve platinum mine project – located on the Western Limb of the Bushveld Complex.
It will also serve as working capital during the start-up, be used for the repayment of the $5 million second advance received from the Sprott Resource Lending Partnership and for general corporate purposes.
Formerly known as the Western Bushveld Joint Venture Project 1, Platinum Group Metals’ Maseve mine will extract and process platinum group metals and associated minerals from the Merensky and UG2 Reefs over a +20 year mine life.
Having produced first concentrate in February this year, largely with low grade stockpile material, commercial production is expected late in calendar 2016.