South Africa : Platinum Group pockets 20 million $ for sound position

Platinum Group Metals Ltd, holding interest in platinum and palladium mining assets in the Bushveld Complex, is making sound financial position with 20 million US$ from institutional investors .

The dual listed Canadian mining company announced closing of the private placement of convertible senior subordinated notes to that effect on 30 June.

The net proceeds from the sale will be utilized for working capital at its 83% owned Maseve mine and for work on the definitive feasibility study on the Waterberg Project.

Furthermore, it intends to use the net of the proceeds for general and administrative expenses and for general working capital purposes, the company also disclosed.

Platinum Group Metals is focused on the operation of the Maseve platinum mine and the exploration on the new platinum and palladium deposit at Waterberg.

The Maseve platinum mine exploits one of the last large, near surface sections of the Merensky Reef above 1,000 meters deep, on the Western Limb of the Bushveld Complex.

It will extract and process platinum group metals and associated minerals from the Merensky and UG2 Reefs over a 20 plus year mine life.

In the Waterberg project, Platinum Group has a direct and indirect 58.62% overall interest, and partnered with JOGMEC (28.35%) and BEE partner Mnombo Wethu Consultants (26%).

The Waterberg project has potential for platinum, palladium, rhodium and gold.

The pre-feasibility study published in October 2016 concluded probable reserves of 12.3 million 4E ounces, annual steady state production rate of 744,000 4E ounces in concentrate and estimated capital to full production of approximately 1.06 billion $including contingencies.