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Platinum Group Metals targeting US$49.6M to repay Maseve mine debt

Platinum Group Metals Ltd. aims to secure US$49.6 million in funding to repay US$43 million in debt owed to Liberty Metals & Mining Holdings LLC related to the Maseve platinum group metals mine in South Africa as well as for working capital.

In September 2017, the cash-strapped Platinum Group Metals sold its 82.9% stake in Maseve to Royal Bafokeng Platinum Ltd. in an attempt to repay debt. The mine had been mothballed in July 2017 due to ramp-up and underground mining issues.

Platinum Group Metals said Aug. 15 that Sprott Private Resource Lending II agreed to provide a two-year, US$20 million credit facility with an interest rate of 11% per annum. As part of the deal, the company will issue 800,000 shares.

The company also launched a public bought-deal offering of 8,326,957 shares at US$1.25 apiece for US$10.4 million in gross proceeds with BMO Capital Markets and agreed to sell 7,575,758 shares to Liberty Metals at US$1.32 apiece for US$10.0 million in gross proceeds.

In addition, Platinum Group Metals entered into a separate private placement with Deepkloof Ltd., a unit of shareholder Hosken Consolidated Investments Ltd., for the sale of 6,940,000 shares at US$1.32 apiece for US$9.2 million in gross proceeds. Upon closing, Hosken's stake in the company will increase to 29.9% from 22.6%.

Platinum Group Metals is focused on developing its Waterberg PGM joint venture with Impala Platinum Holdings Ltd.