Platinum Group Metals Ltd. Closes 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. 19-407
December 19, 2019
Platinum Group Metals Ltd. Closes
Non-Brokered Private Placement
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” or the “Company”) reports closing of the Company’s previously announced
non-brokered private placement of common shares at price of US $1.24 each. An aggregate
of 3,225,807 common shares were subscribed for and issued resulting in gross proceeds to
the Company of US $4. 0 million (the “Private Placement”). A 6% cash finder’s fee in the
amount of US $ 54,232 was paid in cash on a portion of the Private Placement. Hosken
Consolidated Investments Limited (“HCI”), an existing major shareholder of the Company,
subscribed for 1,612,931 common shares through Deepkloof Limited, a subsidiary of HCI.
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.
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.
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 . An
independent Definitive Feasibility Study for the Waterberg Project, published on September
24, 2019, concludes t he Waterberg Project will be a fully mechanised, shallow, decline -
accessed mine and will be one of the lar gest and potentially lowest cash cost underground
PGM mines globally.
The Waterberg Project was discovered by Platinum Group and is being jointly advanced with
the shareholders of Waterberg JV Resources (Pty) Limited (“Waterberg JV Co.”), being
Platinum Gr oup, Impala Platinum Holdings Ltd., Japan Oil, Gas and Metals National
Corporation, Hanwa Co. Ltd. and Mnombo Wethu Consultants (Pty) Ltd.
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.
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 rel ease
include, without limitation, statements regarding the use of proceeds of the Private Placement;
development of the Waterberg Project; and that the Waterberg Project will be a fully mechanised,
shallow, decline-accessed mine and will be one of the larg est and potentially lowest cash cost
underground PGM mines globally. 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 o f various factors, including 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; additional financing
requirements; the Company’s credit 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 the lenders under such 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 credit 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; Implats may not exercise its option; 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 Wate rberg 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 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 Wethu Consultants (Pty) Ltd.; the ability of the Company to retain
its key management employees and sk illed 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
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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 necess ary 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 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 p olitical 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 maintain or regain compliance with the applicable
listing requirements; and ot her 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 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, wh ether as a result of new
information, future events or results or otherwise.
Estimates of mineralization and other technical information included herein and in the Definitive
Feasibility Study for the Waterberg Project have been prepared in accordance with NI 43-101. The
definitions of proven and probable reserves used in NI 43 -101 differ from the definitions in SEC
Industry Guide 7. Under SEC Industry Guide 7 standards, mineralization may not be classified as
a “reserve” unless the mineralization can be economically and legally extracted or produced at the
time the “reserve” determination is made. As a result, the reserves reported by the Company in
accordance with NI 43-101 may not qualify as “reserves” under SEC Industry Guide 7. In addition,
the terms “m ineral resource”, “measured mineral resource” , “indicated mineral resource” and
“inferred mineral resource” are defined in and required to be disclosed by NI 43 -101; however,
these terms are not defined terms under SEC Industry Guide 7 and historically hav e not been
permitted to be used in reports and registration statements filed with the SEC pursuant to SEC
Industry Guide 7. Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Investors are cautioned not to assume t hat any part or all of the mineral
deposits in these categories will ever be converted into reserves. In particular, “inferred mineral
resources” have a great amount of uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred
mineral resource” will ever be upgraded to a higher category. Disclosure of “contained ounces” in
a resource is permitted disclosure under NI 43-101; however, SEC Industry Guide 7 normally only
permits issuers to report mineralization that does not constitute “reserves” by SEC Industry Guide
7 standards as in -place tonnage and grade without reference to unit measures. Accordingly,
descriptions of the Company’s mineral deposits in this pr ess release may not be comparable to
similar information made public by U.S. companies subject to the reporting and disclosure
requirements of SEC Industry Guide 7.