Platinum Group Metals Ltd. Announces US$3.19 million Strategic Investment
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
P: 604-899-5450
F: 604-484-4710
News Release No. 18-368
May 3, 2018
Platinum Group Metals Ltd. Announces
US$3.19 million Strategic Investment
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” , “PTM” or the “Company”) announces that Hosken Consolidated
Investments Limited (“HCI”) has agreed to make a strategic investment in the Company
which will result in HCI owning, through a subsidiary, 10.0% of P TM’s issued and
outstanding shares. HCI has entered into a subscription agreement with the Company, on
a private placement basis, for the purchase of 16,767,778 units (the “Units”) at a price of
US$0.19 per unit for gross proceeds of US$3,185,878 (the “Private Placement”). Each
Unit will consist of one common share and one-half common share purchase warrant, with
each full common share purchase warrant allowing HCI to purchase one further common
share of the Company at a price of US$0.24 per share for a period of three years from the
date of closing of the Private Placement.
HCI is a South African black empowerment investment holding company with a US$1.1
billion market capitalization , listed on the JSE Securities Exchange. HCI’s major
shareholder is the Southern African Clothing and Textile Workers’ Union. The group is
involved in a diverse group of investments including hotel and leisure; interactive gaming;
media and broadcasting; transport; mining; clothing; and properties.
Closing of the Private Placement is subject to customary closing conditions, including
stock exchange approvals. Pursuant to the subscription agreement and upon completion
of the Private Placement , HCI will be entitled to nominate one person to be appointed to
the board of directors of the Company and will have a right to participate in future equity
financings of the Company to maintain approximately a 10.0% interest.
HCI’s nominee to the board of directors of Platinum Group will be Mr. John Anthony
Copelyn, B.A. Hons, B.Proc., Chief Executive Officer of HCI. Mr. Copelyn joined HCI in
1997. Prior to thi s he was a member of the South African parliament and general
secretary of the Southern African Clothing and Textile Workers’ Union. He is also
Chairman of E Media Holdings Ltd., Tsogo Sun Holdings Ltd., Deneb Investments Ltd. and
Niveus Investments Ltd.
The Company intends to use the net proceeds of the Private Placement: (i) for repayment
of debt due to Liberty Metals & Mining Holdings, LLC; and (ii) as permitted, for general
corporate and working capital purposes. A finder’s fee amounting to US$191,153 is to be
paid in connection with the Private Placement.
Securities purchased by HCI 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
PLATINUM GROUP METALS LTD. …2
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.
Platinum Group is focused on, and is the operator of , the Waterberg Project, a bulk
mineable underground deposit in northern South Africa. Waterberg was discovered by the
Company.
On behalf of the Board of
Platinum Group Metals Ltd.
R. Michael Jones
President, CEO and Director
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 LLC have not reviewed and do not
accept responsibility 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 completion and use of proceeds of the Private Placement; the nomination of
a new member to the board of directors of the Company; and future equity financings .
Although the Company believes the forward -looking statements in this press releas e 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 performa nce
and that actual results may differ materially from those in forward -looking statements as
a result of various factors, including the inability to satisfy the closing conditions for the
Private Placement; flexibility in the use of proceeds; delays in receipt of, or the inability to
receive, the remaining proceeds of the Maseve Investments 11 (Pty) Ltd. (“Maseve”) sale
transaction or to realize on the proceeds thereof; additional financing requirements and
the uncertainty of future financing; the Company’ s history of losses; 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 terms of such indebtedness ; the
Company’s secured loan facility (the “LMM Facility”) with Liberty Metals & Mining Holdings,
LLC (“LMM”) is, and any new indebtedness may be, secured and the Company has
PLATINUM GROUP METALS LTD. …3
pledged its shares of PTM RSA, and PTM RSA has pledged its shares of Waterberg JV
Resources (Pty) Limited (“ Waterberg JV Co. ”) to LMM under the LMM 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 LMM Facility or any new secured
indebtedness; the Company’s negative cash flow; the Compan y’s ability to continue as a
going concern; completion of the definitive feasibility study for the Waterberg Project,
which is subject to resource upgrade and economic analysis requirements; uncertainty of
estimated production, development plans and cost e stimates 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; the
Company’s ability to regain compliance with NYSE American continued listing
requirements; fluctuations in the relative values of the U.S. Dollar, the Rand and the
Canadian Dollar; volatility in metals prices; 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 Wethu Consultants (Pty) Ltd. or former shareholders of Maseve; the ability of the
Company to retain its key management employees and skilled and experienced personnel;
contractor performance and delivery of services, changes in contractors or their scope of
work or any disputes with contractors; conflicts of interest; capital requirements may
exceed its current expectations; the uncertainty of cost, operational and economic
projections; the ability of the Company to negotiate and complete future funding
transactions and either settle or restructure its debt as required; 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 n ature 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 Africa; 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 authorizations and water use licences; extreme competition in the mineral
exploration industry; delays in obtaining, or a failur e 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; 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
(“SEC”) and Canadian securities regu lators, 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.