Platinum Group Metals Ltd. Announces Non-Brokered Private Placement
VAN_LAW\ 3259316\3
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-425
December 1, 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 sell 1,121,076 common shares of the Company at price of US$2.23 each for
gross proceeds of US$2.5 million (the “Private Placement”) to existing major beneficial
shareholder, Hosken Consolidated Investments Limited (“HCI”).
The Company intends to use the net proceeds of the Private Placement for its share of pre-
development costs on the Waterberg Project in South Africa, partial debt repayment and
general corporate and working capital purposes. Closing of the Private Placement is subject
to customary closing conditions, including stock exchange approvals and completion of the
definitive agreement.
On November 30, 2020 the Company completed an At-The-Market Offering (“ATM”) (in the
USA only) consisting of 5,440,186 common shares at a price of US $2.21 each. Pricing of the
Private Placement was set to be consistent with t he average pricing for the ATM and
represents an 8.79% discount to the five-day volume weighted average trading price of the
Company’s shares on the NYSE American stock exchange as of December 1, 2020. The Private
Placement will allow HCI to maintain a greater than 31% interest in the Company, which it
held prior to commencement of the ATM.
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, registered 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.
The Company may rely on the exemption for “Eligible Interlisted Issuers” under Section 602.1
of the TSX Company Man ual in connection with the listing of the common shares on the
Toronto Stock Exchange (“TSX”) under the Private Placement.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator and majority owner of the Waterberg Project, a
bulk underground palladium, platinum, gold and rhodium deposit located in South Africa. An
Independent Definitive Feasibility Study for the Waterberg Project was app roved by
PLATINUM GROUP METALS LTD. …2
Waterberg JV Resources Pty Ltd. (“Waterberg JV Co.”), the project joint venture company, on
December 5, 2019.
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.,
Japan Oil, Gas and Metals National Corporation, Hanwa Co. Ltd. and Mnombo Wethu
Consultants (Pty) Ltd. (“Mnombo”). In 2019 the Company founded Lion Battery Technologies
Inc. in partnership with Anglo American Platinum Limited to support the use of palladium and
platinum in lithium battery applications.
On behalf of the Board of
Platinum Group Metals Ltd.
R. Michael Jones
President and CEO
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 TSX 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 productivity 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 capital and insurance
and the costs thereof, some of which, individually or when aggregated with other impacts, may
be material to the Company.
This press release may contain 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 o f the
Private Placement. 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 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 factors, inc luding 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
PLATINUM GROUP METALS LTD. …3
indebtedness, and to comply with the terms of s uch 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 secured 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, development 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 in metals prices;
the uncertainty of alternative funding sources for Waterberg JV Co. ; 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; t he 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 or 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 Afric a;
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 authorizatio ns 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 TSX if it cannot maintai n
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 SEC 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.