Platinum Group discontinues $150 million notes, warrants offering

By Paul A. Harris

Portland, Ore., Dec. 9 – Platinum Group Metals Ltd. announced in a Tuesday press release that due to general market conditions it is discontinuing its previously announced private offering of 150,000 units consisting of $150 million of senior notes due 2021 and warrants for 55.2 million shares of the company’s common stock.

Platinum Group Metals stated that it is considering alternative transactions to fund the completion of its WBJV Project 1 platinum mine.

$110 million bought deal

Meanwhile, in a separate press release, the company announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and GMP Securities LP under which the underwriters have agreed to buy on a bought-deal basis 207.6 million common shares at a price of $0.53 per share for gross proceeds of $110,028,000.

There is a 15% over-allotment option exercisable at the offering price for 30 days following the closing of the offering. The offering is expected to close around Dec. 31.

Proceeds will be used to fund phase 2 development at the WBJV Project 1 platinum mine.

Project 1 loan facility

In another news release, the company announced it has entered into a term sheet with Sprott Resource Lending Partnership for a senior secured operating loan facility of up to $40 million.

Proceeds will be used for the development and operation of the WBJV Project 1.

The facility matures on Dec. 31, 2017 and will pay interest at Libor plus 850 basis points.

The platinum mining company is based jointly in Vancouver, B.C., and in Johannesburg, South Africa.

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