Platinum Group Metals Secures $1.01 Million Private Placement for Waterberg Project Development

Platinum Group Metals Ltd. announced plans to raise approximately $1.01 million through a private placement of 800,000 common shares with major shareholder Hosken Consolidated Investments Limited. The share placement, priced at $1.26 per share, represents a 3.1% premium to the five-day volume-weighted average price on NYSE American as of May 9. This premium pricing indicates strong investor confidence in the company's strategic direction and future prospects.

The proceeds from this private placement will be allocated to support the company's pre-construction activities at the Waterberg Project in South Africa and address general corporate needs. This funding comes at a critical juncture for the project's development timeline, providing essential capital for advancing preparatory work before full-scale construction commences. The Waterberg Project represents a significant opportunity in the platinum group metals sector, particularly given the growing demand for palladium in automotive catalysts and other industrial applications.

Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, reinforcing its long-term commitment to Platinum Group Metals' success. The proposed share issuance is subject to regulatory approval and will be executed under exemptions to registration and shareholder approval requirements, given HCI's status as a related party. The shares will be subject to a four-month-plus-one-day resale restriction, ensuring compliance with securities regulations and preventing immediate market dilution.

The Waterberg Project, a bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI through their strategic partnership. This collaborative approach leverages the expertise and resources of multiple industry players, potentially accelerating development timelines and optimizing operational efficiency. The project's significance extends beyond immediate financial considerations, as it represents one of the newer major platinum group metal developments in a region that has historically dominated global production.

This strategic investment highlights the ongoing collaborative efforts in advancing the project's development and potential mineral resource extraction. The timing of this funding round is particularly noteworthy given current market conditions and the strategic importance of securing reliable platinum and palladium supplies for various industrial applications, including automotive manufacturing and clean energy technologies. The continued support from major shareholders like HCI provides stability and confidence in the company's ability to navigate the complex development phase of the Waterberg Project.