Platinum Group Metals Closes Private Placement and Appoints an Additional Director
788 – 550 Burrard Street Vancouver, BC V6C 2B5 P: 604-899-5450 F: 604-484-4710
No. 18-372
News Release
May 15, 2018
PLATINUM GROUP METALS CLOSES PRIVATE PLACEMENT AND APPOINTS AN ADDITIONAL DIRECTOR
Vancouver, B.C. (May 15, 2018) – Platinum Group Metals Ltd. (PTM-TSX, PLG-NYSE American) (the “Company” or “Platinum Group Metals”) announces the closing of its previously announced strategic investment in the Company by Hosken Consolidated Investments Limited (“HCI”) on a private placement basis. HCI has subscribed, through a subsidiary, for 15,090,999 units (the “Units”) at a price of US$0.15 per unit for gross proceeds of US$2,263,649.85 (the “Private Placement”). Each Unit consists of one common share and one common share purchase warrant, with each common share purchase warrant allowing HCI to purchase one further common share of the Company at a price of US$0.17 per share for a period of 18 months until November 15, 2018.
HCI is a South African black empowerment investment holding company with a US$1.1 billion market capitalization, listed on the JSE Securities Exchange. Pursuant to the subscription agreement, upon completion of the Private Placement, HCI became entitled to nominate one person to be appointed to the board of directors of the Company and has a right to participate in future equity financings of the Company to maintain its pro-rata interest. Accordingly, the Company has appointed HCI’s nominee, Mr. John Anthony Copelyn, B.A. Hons, B.Proc., Chief Executive Officer of HCI, to its board of directors.
The Company intends to use the net proceeds of the Private Placement: (i) for debt repayment towards a loan facility and production payment termination fees due to Liberty Metals & Mining Holdings, LLC; and (ii) for general corporate and working capital purposes.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Act”), 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.