VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 12, 2012) -Platinum Group Metals Ltd., (TSX:PTM)(NYSE Amex:PLG)(NYSE MKT:PLG) (the “Company” or “Platinum Group Metals”) has priced its previously announced public offering of common shares (the “Offering”). Pursuant to the Offering, the Company will issue 225,000,000 common shares at a price of C$0.80 per common share, for aggregate gross proceeds of C$180,000,000. The Company will file an amended and restated preliminary short form prospectus with the securities commissions in all provinces of Canada, and will file an amendment to the registration statement with the United States Securities and Exchange Commission. Closing of the Offering is expected to occur on or about January 4, 2013.
An impressive amount of money that will be put to good use developing one of the last remaining shallow, high grade PGM deposits in South Africa towards production in late 2014. Although it’s generally not great for shareholders when the share count is more than doubled near the 52-wk (and then some) low, it could have been worse (e.g. no warrants attached). Meanwhile the company is busy finalizing a cheap looking debt facility for $260 million. I suppose the only potential hiccup on the debt side is an “agreed hedging strategy focused on byproduct metals palladium, gold and base metals” with details as of yet unknown.
6 months ago
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