Platinum Group Metals Announces US$25 Million Bought Deal Financing
News Release January 23, 2017
PLATINUM GROUP METALS ANNOUNCES US$25 MILLION BOUGHT
DEAL FINANCING
Vancouver, B.C. (January 23, 2017) – Platinum Group Metals Ltd. , (PTM-TSX, PLG-
NYSE.MKT) (the “Company” or “Platinum Group Metals”) has announced today that it
has entered into an agreement with a syndicate of underwriters led by BMO Capital
Markets under which the underwriters have agreed to buy on a bought deal basis
17,125,000 common shares of the Company (the “Common Shares ”), at a price of
US$1.46 per Common Share for gross proceeds of approximately US$25 million (the
“Offering”). The Company has granted the u nderwriters an option, exercisable at the
offering price for a period of 30 days following the closing of the Offering, to purchase
up to an additional 15% of the Offering to cover over-allotments, if any, and for market
stabilization purposes . The Offering is expected to close on or about January 31,
2017 and is subject to customary closing conditions including, but not limit ed to,
Toronto Stock Exchange and NYSE MKT approvals.
The Company intends to use the net proceeds of the Offering (i) for underground
development and production ramp- up of the Maseve Mine; (ii) for working capital
during start-up; and (iii) for general corporate purposes.
The Offering is being made pursuant to an effective shelf registration statement
previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and a
corresponding Canadian base shelf prospectus filed with the securities r egulatory
authority in each of the provinces of Canada, except Quebec. A prospectus
supplement relating to the Offering has been filed with the SEC and with the
securities regulatory authority in each of the provinces of Canada, except Quebec.
A copy of the prospectus supplement and base shelf prospectus relating to the
Offering in Canada may be obtained by contacting BMO Capital Markets, Brampton
Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road,
Brampton, Ontario, L6S 6H2 or by tel ephone at (905) 791- 3151 Ext 4312 or by email
at [email protected]. A copy of the prospectus supplement and base
shelf prospectus relating to the Offering in the United States may be obtained by
contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times
Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at
(800) 414- 3627 or by email at [email protected] .
This news release shall not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of the Common Shares in any jurisdiction in which
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
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such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of that jurisdiction.
About Platinum Group Metals Ltd.
Platinum Group is based in Johannesburg, South Africa and Vancouver, Canada. The
Company's business is currently focused on the operation of the Project 1 “Maseve”
platinum mine and the exploration and feasibility engineering on the newly discovered
Waterberg platinum and palladium deposit, where the Company is the operator of the
Waterberg JV Project with JOGMEC and Mnombo.
For further information, please contact:
R. Michael Jones, President
or Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not
accept respons ibility for the accuracy or adequacy of this news release, which has
been prepared by management.
This press release contains forward- looking information within the meaning of
Canadian securities laws and forward- looking statements within the meaning of U. S.
securities laws (collectively "forward -looking statements"). Forward- looking
statements are typically identified by words such as: believe, expect, anticipate,
intend, estimate, plans, postulate and similar expressions, or are those, which, by
their nature, refer to future events. All statements that are not statements of historical
fact are forward-looking statements. Forward-looking statements in this press release
include, without limitation, statements regarding the Offering, including the terms,
potential completion and the use of proceeds of the Offering. Although the Company
believes the forward- looking statements in this press release are reasonable, it can
give no assurance that the expectations and assumptions in such statements will
prove to be correct. The Company cautions investors that any forward- looking
statements by the Company are not guarantees of future results or performance, and
that actual results may differ materially from those in forward- looking statements as a
result of various f actors, including, but not limited to, that the Company may be
unsuccessful in satisfying the conditions to closing of the Offering including, but not
limited to, obtaining Toronto Stock Exchange and NYSE MKT approvals ; that the
Offering may not be complet ed on the terms and timeline indicated, or at all; that the
Company’s use of proceeds of the Offering may differ from those indicated ;
uncertainty of production, development plans and cost estimates for the Maseve
Mine; additional financing requirements; the Company’s ability to comply with the
terms of its indebtedness; cash flow risks; risks of delays in the production ramp- up of
Project 1; variations in market conditions; the nature, quality and quantity of any
mineral deposits that may be located; metal prices; other prices and costs; currency
exchange rates; the Company's ability to obtain any necessary permits, consents or
authorizations required for its activities and to comply with applicable regulations ; the
Company's ability to produce minerals from its properties successfully or profitably, to
continue its projected growth, or to be fully able to implement its business strategies;
and other risk factors described in the Company's Form 40- F annual report, annual
information form and other filings with the SEC and Canadian securities regulators,
including the registration statement, base shelf prospectus and prospectus
supplement relating to the Offering, which may be viewed at www.sec.gov and
www.sedar.com, respect ively. Any forward- looking statement speaks only as of the
date on which it is made and, except as required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward- looking statements,
whether as a result of new information, future events or results or otherwise.