Business
Platinum Group Metals Ltd. Announces Non-Brokered Private Placement and Planned Full Repayment of Credit Facility
Vancouver, British Columbia and Johannesburg, South Africa--(Newsfile Corp. - January 25, 2022...
About this update from Platinum Group Metals Ltd.
[{"type":"text","content":"Platinum Group Metals Ltd. Announces Non-Brokered Private Placement and Planned Full Repayment of Credit FacilityVancouver, British Columbia and Johannesburg, South Africa--(Newsfile Corp. - January 25, 2022) - Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) (\"Platinum Group\" or the \"Company\") reports that it intends, subject to regulatory approval, to sell 3,539,823 common shares of the Company at price of US$1.695 each for gross proceeds of US$6.0 million (the \"Private Placement\") to existing major beneficial shareholder, Hosken Consolidated Investments Limited (\"HCI\"). The Company intends to use the net proceeds of the Private Placement to repay in full the remaining US$3.0 million principal balance of a senior secured facility with Sprott Private Resource Lending II (Collector), LP and the other lenders party thereto (the \"2019 Sprott Facility\"), and for general corporate and working capital purposes. Closing of the Private Placement is subject to the prior issuance of the Note Repurchase Shares (as defined below) and customary closing conditions, including stock exchange approvals. On January 20, 2022, the Company reported the execution of privately negotiated agreements with the beneficial owners of US$20 million of the Company's 6 7/8% Convertible Senior Subordinated Notes (the \"Notes\") due July 1, 2022 under which the Company will purchase and cancel the Notes for consideration of 11,793,509 Common Shares of the Company (the \"Note Repurchase Shares\"), plus accrued and unpaid interest which will be paid in cash. Pricing of the Private Placement was set to be consistent with the pricing for the purchase of the Notes. The Private Placement will allow HCI to return to a near 26% interest in the Company, which it holds prior to the purchase and cancellation of the Notes. The Company's President and CEO, Frank R. Hallam, stated, \"We appreciate the support of our major shareholder HCI, allowing the Company to make a final repayment of our debt. The Company will be debt free for the first time since 2015 and will be well positioned to advance its objectives for the Waterberg Project in South Africa.\" Securities purchased pursuant to the Private Placement may not be traded for a period of four months plus one day from the closing of the Private Placement. The securities described herein have not been, a...