Platinum Group Metals Secures $1 Million Investment from Major Shareholder for Waterberg Project Development
TL;DR
HCI's US$1.008M investment in Platinum Group Metals secures a 26% ownership stake, offering strategic advantage in the palladium and platinum market.
HCI's subsidiary Deepkloof Limited purchased 800,000 common shares of Platinum Group Metals at US$1.26 per share, raising HCI's ownership to 26%.
The investment by HCI in Platinum Group Metals will support pre-construction work at the Waterberg Project in South Africa, benefiting local communities and advancing sustainable mining practices.
Platinum Group Metals' collaboration with HCI highlights the evolving landscape of strategic investments in the mining sector, paving the way for future partnerships and industry growth.
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Platinum Group Metals Ltd. has successfully closed a US$1.008 million non-brokered private placement with its major shareholder Hosken Consolidated Investments Limited (HCI), demonstrating continued investor confidence in the company's strategic development plans. The transaction, finalized on May 29, 2025, involved the issuance of 800,000 common shares at US$1.26 per share. This investment restores HCI's ownership stake to 26% in the company, signaling a strong ongoing partnership between the two entities.
Proceeds from the private placement will be strategically allocated to support pre-construction and engineering work at the Waterberg Project, a significant bulk underground palladium and platinum deposit located in South Africa. The project is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI, representing a collaborative effort among major industry players. This funding injection comes at a critical juncture as the company advances development efforts for what is considered a pivotal asset in the platinum group metals sector.
The transaction was negotiated expeditiously and qualifies for exemptions under MI 61-101, given HCI's status as a related party. This approach highlights the company's efficient capital-raising strategy and commitment to maintaining strong relationships with key stakeholders. The successful completion of this private placement underscores the confidence that major investors have in Platinum Group Metals' strategic direction and the potential of its flagship project.
The Waterberg Project represents a critical asset in the platinum group metals sector, with potential significant implications for South Africa's mining industry and global precious metals supply. By securing additional funding, Platinum Group Metals continues to advance its development efforts and strengthen its position in the competitive mining landscape. The project's successful development could have far-reaching effects on the regional economy and contribute substantially to the global supply of platinum and palladium, metals essential for various industrial applications including automotive catalysts and clean energy technologies.
Curated from InvestorBrandNetwork (IBN)
