This includes a US$40 million loan facility with its largest shareholder Liberty Metals and Mining Holdings (LMM) as well as a $40 million working capital facility from the Sprott Resource Lending Partnership, originally executed in February, 2015.
Subsequently, the company will now initiate hot commissioning and continue with underground development at the WBJV Project 1 platinum mine near Rustenburg, South Africa as planned.
Closing and draw down of the facilities was completed simultaneously. All common shares issued under the facilities are subject to a Canadian hold period of four months and one day.
In addition to operating the mine, the use of proceeds will also be used for general working capital.
“We are very pleased to complete this transaction with the clear support and vision of our major shareholders. We look forward to the ramp-up of our first mine with an eye on continued solid demand for platinum and palladium and improved markets in the near and medium term,” says R. Michael Jones, CEO and co-founder of Platinum Group Metals.