Platinum Group Metals Ltd. Closes Non-Brokered Private Placement with Largest Shareholder
VAN_LAW\ 3259316\3
838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-422
October 15, 2020
Platinum Group Metals Ltd. Closes
Non-Brokered Private Placement with Largest Shareholder
(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$2.18 each. An aggregate
of 1,146,790 common shares were subscribed for and issued resulting in gross proceeds to
the Company of US$ 2,500,002.20 (the “Private P lacement”) to existing major beneficial
shareholder, Hosken Consolidated Investments Limited (“HCI”) through its subsidiary
Deepkloof Limited. Closing of the Private Placement allows HCI to maintain a greater than
31% interest in the Company.
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.
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 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 approved by
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.
(“Implats”), 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.
PLATINUM GROUP METALS LTD. …2
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 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 or may 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 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 use of proceeds of the Private Placement.
Although the Company believes any forward -looking statements in this press release are
reasonable, it can give no assurance that th e 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, including the Company’s
inability to obtain subscriptions for and complete the Private Placement on the terms disclosed
above, or at all, or to obtain required regulatory approvals f or the Private Placement; 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 terms of such indebtedness; additional financing
requirements; the $20 million Sprott Loan Facility (the “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.
and Mnombo to Sprott, under the 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
Sprott Facility or any new secured indebtedness; the Company’s history of lo sses and negative
cash flow; the Company’s ability to continue as a going concern; the Company’s properties may
PLATINUM GROUP METALS LTD. …3
not be brought into a state of commercial production; uncertainty of estimated production,
development plans and cost estimates for the Waterber g 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; f luctuations in the relative values of the U.S. Dollar,
the Rand and the Canadian Dollar; volatility 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 ke y
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 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 competi tion 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 a pplicable
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 (“SEC”) and Canadian securities regulators, whi ch 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.