Platinum Group Metals shares rise on upsized private placement
One day after its initial $2 million private placement announcement, Platinum Group Metals (TSX: PTM) has decided to double the size of the offering to 3.22 million common shares at a price of $1.24 per share for gross proceeds of $4 million.
The company’s biggest shareholder, Hosken Consolidated Investments, is expected to participate in the placement.
Shares of PTM rose by 5% during Friday’s trading session. The Vancouver-based miner has a market capitalization of C$110.2 million.
The company intends to use the financing proceeds for the Waterberg joint venture project, an underground palladium, platinum, gold and rhodium operation situated in South Africa’s Limpopo province.
Based on a recent feasibility study, measured and indicated resources at Waterberg are estimated at 242.4 million tonnes at 0.98 gram platinum, 2.13 grams palladium, 0.05 gram rhodium and 0.22 gram gold.
PTM currently owns 50% of the joint venture and serves as the operator. Impala Platinum, which owns 15% of the joint venture, has a purchase and development option to increase its stake to 50.01%.