Platinum Group Metals Secures $1 Million Investment from Major Shareholder HCI
TL;DR
HCI to raise $1.01M in private placement at $1.26 per share, supporting Waterberg Project. 3.1% premium to VWAP.
HCI will own 26% after shares sale, subject to resale restriction and exempt from registration due to related-party status.
Funding for pre-construction at Waterberg Project in South Africa, advancing towards sustainable mining and economic growth.
HCI's $1.01M private placement showcases strategic investment in platinum group metals sector, driving innovation and market competitiveness.
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Platinum Group Metals Ltd. announced plans to raise approximately $1.01 million through a private placement of common shares with major shareholder Hosken Consolidated Investments Limited (HCI). The company will issue 800,000 shares at $1.26 per share, representing a 3.1% premium to the five-day volume-weighted average price on NYSE American.
The investment will directly support the company's pre-construction activities at the Waterberg Project in South Africa and provide additional resources for general corporate needs. Upon completion of the placement, HCI will maintain a 26% ownership stake in the company.
The share placement comes with specific regulatory considerations, including a four-month-plus-one-day resale restriction. The transaction was structured under exemptions to registration and shareholder approval requirements, leveraging HCI's status as a related-party investor.
The Waterberg Project, a significant bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals with partners Implats, Mnombo, and HJM. This strategic investment signals continued confidence in the project's potential and the company's long-term development strategy in the platinum mining sector.
Curated from InvestorBrandNetwork (IBN)
