Platinum Group Metals Ltd. Announces Non-Brokered Private Placement
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838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-414
June 2, 2020
Platinum Group Metals Ltd. Announces
Non-Brokered Private Placement
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” or the “Company”) reports that the Company intends, subject to regulatory
approval, to offer and sell an aggregate of 1,428,600 common shares of the Company at price
of US$1.40 each for gross proceeds of US$2.0 million (the “Private Placement”). An existing
major beneficial shareholder of the Company, Hosken Consolidated Investments Limited, is
expected to participate in the Private Placement. A 6.0% cash finder’s fee is expected to be
paid on a portion of the Private Placement.
The Company intends to use the net proceeds of the Private Placement for its share of costs
on the Waterberg Project and for general corporate and working capital purposes. Closing of
the Private Placement is subject to customary closing conditions, inclu ding stock exchange
approvals.
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, and will not be, r egistered under the United States Securities Act of
1933 (the “Act”), as amended, and may not be offered or sold within the United States or to,
or for the account or benefit of, U.S. persons absent registration or an applicable exemption
from the registration requirements of such Act.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground
palladium, platinum, gold and rhodium (“PGM”) deposit located in South Africa.
The Waterberg Project was discovered by Platinum Group and is being jointly advanced with
the shareholders of Waterberg JV Co., being Platinum Group, Impala Platinum Holdings Ltd.
(“Implats”), Japan Oil, Gas and Metals N ational Corporation, Hanwa Co. Ltd. and Mnombo
Wethu Consultants (Pty) Ltd. (“Mnombo”). Implats is currently funding an implementation
budget for the project.
On behalf of the Board of
Platinum Group Metals Ltd.
R. Michael Jones
President and CEO
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For further information 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
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange and the NYSE American have not reviewed and do not accept
responsibility for the accuracy or adequacy of this news release, which has been prepared by
management.
The recent COVID-19 pandemic and related measures taken by government create uncertainty
and have had, and may continue to have, an adverse impact on many aspects of the Company’s
business, including employee health, workforce prod uctivity and availability, travel restrictions,
contractor availability, supply availability, the Company’s ability to maintain its controls and
procedures regarding financial and disclosure matters and the availability of insurance and the
costs thereof, some of which, individually or when aggregated with other impacts, may be material
to the Company.
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 size, participation in, receipt of regulatory
approvals for, and the completion and amount and use of proceeds of the Private Placem ent.
Although the Company believes any 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 fo rward-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 factors, including the Company’s
inability to obtain s ubscriptions for and complete the Private Placement on the terms disclosed
above, or at all, to obtain required regulatory approvals for the Private Placement and to obtain
and maintain the waivers necessary from lenders to permit the use of proceeds conte mplated
above, possible adverse impacts due the global outbreak of COVID-19 (as described above), the
Company’s inability to generate sufficient cash flow or raise sufficient additional capital to make
payment on its indebtedness, and to comply with the te rms of such indebtedness; additional
financing requirements; the 2019 Sprott Facility is, and any new indebtedness may be, secured
and the Company has pledged its shares of Platinum Group Metals (RSA) Proprietary Limited (“PTM
RSA”), and PTM RSA has pledged its shares of Waterberg JV Co. to Sprott, under the 2019 Sprott
Facility, which potentially could result in the loss of the Company’s interest in PTM RSA and the
Waterberg Project in the event of a default under the 2019 Sprott Facility or any new secure d
indebtedness; the Company’s history of losses and negative cash flow; the Company’s ability to
continue as a going concern; the Company’s properties may not be brought into a state of
commercial production; uncertainty of estimated production, developmen t plans and cost
estimates for the Waterberg Project; discrepancies between actual and estimated mineral reserves
and mineral resources, between actual and estimated development and operating costs, between
actual and estimated metallurgical recoveries and between estimated and actual production;
fluctuations in the relative values of the U.S. Dollar, the Rand and the Canadian Dollar; volatility
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in metals prices; Implats may not exercise the Purchase and Development Option; the Company
may become subject to the U.S. Investment Company Act; the failure of the Company or the
other shareholders to fund their pro rata share of funding obligations for the Waterberg Project;
any disputes or disagreements with the other shareholders of Waterberg JV Co. or Mnombo; the
ability of the Company to retain its key management employees and skilled and experienced
personnel; conflicts of interest; litigation or other administrative proceedings brought against the
Company; actual or alleged breaches of governance processes o r instances of fraud, bribery or
corruption; exploration, development and mining risks and the inherently dangerous nature of the
mining industry, and the risk of inadequate insurance or inability to obtain insurance to cover
these risks and other risks and uncertainties; property and mineral title risks including defective
title to mineral claims or property; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in Canada and South Afri ca;
equipment shortages and the ability of the Company to acquire necessary access rights and
infrastructure for its mineral properties; environmental regulations and the ability to obtain and
maintain necessary permits, including environmental authorizati ons and water use licences;
extreme competition in the mineral exploration industry; delays in obtaining, or a failure to obtain,
permits necessary for current or future operations or failures to comply with the terms of such
permits; risks of doing business in South Africa, including but not limited to, labour, economic and
political instability and potential changes to and failures to comply with legislation; the Company’s
common shares may be delisted from the NYSE American or the T oronto Stock Exchange if it
cannot maintain compliance with the applicable listing requirements; and other risk factors
described in the Company’s most recent Form 20 -F annual report, annual information form and
other filings with the U.S Securities and Exchange Commission (“SE C”) and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively. Proposed
changes in the mineral law in South Africa if implemented as proposed would have a material
adverse effect on the Company’s business and potential interest in projects. Any forward-looking
statement speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-
looking statement, whether as a result of new information, future events or results or otherwise.