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 valuation and future prospects despite current market conditions.

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 development of the Waterberg Project, which represents one of the significant palladium and platinum deposits in development globally. The strategic timing of this capital infusion enables Platinum Group Metals to advance preparatory work essential for moving the project toward construction phase.

Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, reinforcing its commitment as a major shareholder. 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 providing stability to the company's shareholder structure during this development phase.

The Waterberg Project, a bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI. This collaborative development approach leverages the expertise and resources of multiple industry participants, enhancing the project's technical and financial viability. The strategic investment highlights the ongoing collaborative efforts in advancing the project's development and potential mineral resource extraction, positioning the Waterberg Project as a significant future contributor to global platinum group metals supply.

This funding round represents a crucial step in maintaining momentum for the Waterberg Project's development timeline. The private placement structure allows Platinum Group Metals to secure necessary capital while minimizing dilution and maintaining strategic alignment with key stakeholders. The transaction underscores the importance of strategic partnerships in advancing large-scale mining projects through development phases, particularly in the capital-intensive platinum group metals sector where project financing remains challenging.