Platinum Group Metals Secures $1.01 Million Private Placement from Major Shareholder HCI

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 transaction demonstrates HCI's continued commitment to the company's strategic direction and financial stability.

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 injection comes at a critical juncture for the project's development timeline, enabling the company to maintain momentum in advancing the significant mineral deposit. Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, reinforcing its position as a key strategic partner in the venture.

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 maintaining market stability during the initial post-transaction period. This structured approach to financing reflects the company's commitment to regulatory compliance while securing necessary capital for project advancement.

The Waterberg Project, a bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI. This strategic investment highlights the ongoing collaborative efforts in advancing the project's development and potential mineral resource extraction. The project represents one of the significant undeveloped platinum group metal resources globally, with the potential to contribute substantially to global palladium and platinum supply. The continued financial backing from major shareholders like HCI underscores confidence in the project's long-term viability and the strategic importance of developing new sources of these critical metals.