Platinum Group Metals closes $175 million public offering

Vancouver-based Platinum Group Metals (TSX:PTM) announced December 31 it had closed a substantial public offering of $175.2 million.

On December 9, the company issued 148,500,000 shares at $1.18 a piece.

A consortium of underwriters – BMO Capital Markets, GMP Securities L.P., CIBC World Markets, RBC Dominion Securities, Barclays Capital Canada, PI Financial Corp., Raymond James and Dundee Securities – bought the shares.

The company’s stock jumped $0.10 to $1.27 after opening at $1.17.

Platinum Group Metals plans to use the proceeds to fund its projects in South Africa, including the second phase of development of its Western Bushveld mine and  exploration work at the Waterberg joint venture development and the Waterberg Extension project.

The Western Bushveld mine is a large-scale platinum, palladium, rhodium and gold development. Phase one of the project contains 275,000 ounces of platinum, palladium, rhodium and gold and is forecasted to have a 20-year mine life.

The Waterberg joint venture is an exploration project located on the northern tip of the Bushveld Complex, the same region that the Western Bushveld mine is located. The Japan Oil, Gas and Metals National Corporation owns a 37% stake in the project.

The Waterberg extension is another exploration venture located north of the Waterberg joint venture. South Africa-based Mnombo Wethu Consultants own a 26% stake.

For previous BIV coverage on Platinum Group Metals and the platinum and palladium markets, click here.