Platinum Group Metals Ltd. Enters Into At-The-Market Offering Sales Agreement
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838 – 1100 Melville Street
Vancouver, BC V6E 4A6
P: 604-899-5450
F: 604-484-4710
News Release No. 20-418
September 4, 2020
Platinum Group Metals Ltd. Enters Into
At-The-Market Offering Sales Agreement
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group” or the “Company”) reports that it has entered into an Equity Distribution
Agreement (the “Sales Agreement”) with BMO Capital Markets Corp. (“BMO”), effective as of
September 4, 2020. Under the Sales Agreement, Platinum Group may sell its common shares
in the capital of the Company from time to time for up to US$12.0 million in aggregate sales
proceeds in “at-the-market” transactions. No offers or sales of common shares will be made
in Canada, to anyone known by BMO to be a resident of Canada or on or through the facilities
of the Toronto Stock Exchange (the “TSX”) or other trading markets in Canada.
For more complete information about the Company and the offering , investors are directed
to read the prospectus supplement relating to and describing the terms of the offering, and
the related registration statement on Form F-3 and other documents that Platinum Group has
filed with the Securities and Exchange Commission (the “SEC”). You may get these documents
for free by visiting EDGAR on the SEC webs ite at www.sec.gov. Alternatively, copies of the
prospectus supplement relating to the offering may be obtained, when available, from:
BMO Capital Markets Corp.
3 Times Square
New York, NY 10036
Facsimile: (212) 702-1205
Attention: Equity Capital Markets Desk
or by emailing [email protected].
The Company has relied on the exemption for “Eligible Interlisted Issuers” under Section
602.1 of the TSX Company Manual in connection with the listing of the common shares on
the TSX under the offering.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the
securities being offered, nor may there be any sale of the securities being offered in any state
or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any state or other jurisdiction.
The Company intends to use the net proceeds of the offering for its share of pre-development
costs on the Waterberg Project, general corporate purposes, partial repayment of debt and
other amounts due.
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PLATINUM GROUP METALS LTD. …2
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.,
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.
In 2019, the Company founded Lion Battery Technologies Inc. in partnership with Anglo
American Platinum Limited to support the use of palladium and platinum i n 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”) , including statements with respect to the sale of
common shares under the Sales Agreement and the amount and uses of proceeds thereof .
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,
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PLATINUM GROUP METALS LTD. …3
refer to future events. All statements that are not statements of historical fact are forward-looking
statements. 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 re sults may differ materially from
those in forward -looking statements as a result of various factors, including possible adverse
impacts due the global outbreak of COVID -19 (as described above), the Company’s inability to
generate sufficient cash flow or ra ise sufficient additional capital to make payment on its
indebtedness, and to comply with the terms 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 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 b e 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 Water berg 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 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 legis lation, 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 re gulations 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 c urrent 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 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 SEC and Canadian securities regulators, wh ich 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.