Financing Closed for $1,799,000 - Africa Wide Investment Holdings, An Empowerment Company Plans to Close Prior to January 15, 2002 for a Further $500,000 Investment in PTM
December 23, 2002
Platinum Group Metals Ltd (TSX-V: PTM) is pleased to announce the closing of financings totalling $1,799,125. Proceeds of $767,875 are from the sale of 1,181,346 Flow Through Units at $0.65 per Flow Through Unit and $1,031,250 is from the sale of 2,062,500 Non-Flow Through Units, at $0.50 per Unit. Pacific International Securities Inc. ("PI") and Haywood Securities Inc. were co-lead agents. A total of $100,000 of the Non Flow Through placement was non-brokered.
A further $500,000 for 1,000,000 Non-Flow through Units is expected to close as soon as possible, pending formal documentation and South African Reserve Bank and regulatory approvals. This second closing is planned for Africa Wide Investment Holdings Pty Ltd., an empowerment company based in South Africa. In any event Africa Wide must close this second tranche before January 15, 2002 or it will be cancelled. R. Michael Jones President of PTM said "We are extremely pleased to have our financing plans oversubscribed and to have Africa Wide, our joint venture partner, as a significant investor and shareholder in PTM."
Each Flow Through Unit consists of one common share of PTM and one non-flow through common share purchase warrant (the "FT Warrant") of the Issuer. Each FT Warrant is exercisable into one additional PTM non-flow through common share for a period of 12 months from Closing at an exercise price of $0.85.
Each Non Flow Through Unit consists of one common share of the Issuer and one half of a common share purchase warrant (the "Common Warrant") of the Issuer. Each whole Common Warrant is exercisable into one additional common share of the Issuer for a period of 24 months from the close of the private placement at an exercise price of $0.75.
Commission on the brokered offerings was 7% cash on gross proceeds and Agent''s Warrants for 10% of the number of Units sold of both offerings. The Agent''s Warrants are exercisable at $0.75 for a common share for a period of two years from the closing date or December 23, 2004. All of the shares issued pursuant to the above closing will bear a hold period restricting resale, which will expire April 24, 2002.
Net proceeds of approximately $1,600,000 from the above closed financings, as well as the proceeds of a $500,000 tranche closed December 17, 2002, will be used to acquire and advance PTM''s diversified portfolio of mineral properties in both Canada and South Africa focussed on platinum group elements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 800 -- 409 Granville Street, Vancouver BC, Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330
