PLATINUM Group Metals (PTM) today announced the issue of about 1.12 million shares worth $2.5m to Hosken Consolidated Investments, the Johannesburg-listed industrial firm.
The purchase of the shares maintains HCI’s stake in PTM at above 31% following an at-the-market sale of shares on November 30. HCI bought the shares at $2.23 each.
Proceeds from the private placement to HCI will be used for PTM’s share of development costs on its Waterberg Project in South Africa as well as partial debt repayment and general working capital purposes.
The at-the-market offering saw PTM issue about 5.44 million shares at a price of $2.21 per share raising around $12m.
According to a definitive feasibility report completed earlier this year, the Waterberg Project has been scoped for first production from 2023 before ramping up to total output in 2027 of 420,000 ounces a year of platinum group metals (PGMs), the majority of which would be palladium.
Speaking in September, Mike Jones, CEO of PTM, said he was confident the company would find an investor for the Waterberg Project after Impala Platinum said it would not take a lead role in the venture, although it was keeping its existing 15% stake.
“This is a global market. We are very confident of getting the partners together,” said Jones. “There are a lot of players globally that are interested.”
The outlook for the palladium market is that the adoption of hydrogen technology industrially and, to some extent, in the automotive industry would be supportive of demand in the medium- to long-term.
