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 that provides stability during critical project development phases.
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 approach to developing one of the world's most important platinum group metals deposits. This funding injection comes at a crucial time as the company advances development efforts that could significantly impact global precious metals supply chains.
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 ability to secure funding quickly from an existing major investor demonstrates confidence in the company's management and strategic direction, particularly important in the capital-intensive mining sector where timely development can determine competitive advantage.
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 development could have substantial economic implications for South Africa's mining sector, potentially creating jobs and contributing to the country's position as a leading producer of platinum group metals. The continued investment from HCI suggests confidence in both the technical viability of the Waterberg Project and the long-term demand fundamentals for platinum and palladium, metals essential for various industrial applications including automotive catalysts and hydrogen technologies.
