Maseve mine
TSX and NYSE-listed Platinum Group Metals has entered into an agreement with BMO Capital Markets to fund operational developments at its Maseve mine.

BMO Capital Markets (BMO) has agreed to buy, on a bought deal basis 15 390 000 Platinum Group Metals common shares at a price of US$1.30 per share for gross proceeds of approximately $20 million.

Platinum Group Metals has granted BMO an option, exercisable at the offering price for a period of 30 days following the closing of the offering, 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 is subject to customary closing conditions including, but not limited to, the Toronto Stock Exchange (TSX) and NYSE MKT approvals.

Platinum Group Metals intends to use the net proceeds of the offering for underground development and production ramp-up of the Maseve platinum mine; for working capital during start-up; for repayment of the $2.5 million outstanding amount of a prior advance under the company’s credit agreement with a syndicate of lenders led by Sprott Resource Lending Partnership; and for general corporate purposes.

The offering is being made pursuant to an effective shelf registration statement previously filed with the US 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 been filed with the SEC and with the securities regulatory authority in each of the provinces of Canada, except Quebec.

Feature image credit: Platinum Group Metals

(A view of the Maseve mine on the Western Limb of the Bushveld Complex in the North West Province of South Africa)