Platinum Group Metals Secures $1.01 Million Investment from Major Shareholder HCI for Waterberg Project Development

Platinum Group Metals Ltd. announced plans to raise approximately $1.01 million through a private placement of 800,000 common shares with major shareholder Hosken Consolidated Investments Limited. The share placement, priced at $1.26 per share, represents a 3.1% premium to the five-day volume-weighted average price on NYSE American as of May 9. This strategic financing arrangement underscores the confidence of existing major shareholders in the company's development trajectory and long-term value proposition.

The proceeds from this private placement will be allocated to support the company's pre-construction activities at the Waterberg Project in South Africa and address general corporate needs. This funding injection comes at a critical juncture for the project's advancement, providing necessary capital for ongoing development work. Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, preserving its significant interest in Platinum Group Metals' future operations and potential mineral extraction activities.

The proposed share issuance is subject to regulatory approval and will be executed under exemptions to registration and shareholder approval requirements, given HCI's status as a related party. The shares will be subject to a four-month-plus-one-day resale restriction, ensuring compliance with securities regulations and maintaining market stability during the initial post-transaction period. This structured approach to financing demonstrates the company's commitment to regulatory compliance while securing essential development capital.

The Waterberg Project, a bulk underground palladium and platinum deposit, is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HJM. This collaborative development model represents a significant approach to resource extraction in the region, leveraging the expertise and resources of multiple industry participants. The strategic investment from HCI highlights the ongoing collaborative efforts in advancing the project's development and potential mineral resource extraction, reinforcing the project's importance within the broader platinum group metals sector.

This financing arrangement occurs against the backdrop of evolving market conditions for platinum group metals, where strategic investments in promising projects can significantly impact future production capacity and market positioning. The premium pricing of the share placement relative to recent trading levels suggests strong confidence in the company's valuation and development prospects. The transaction structure, involving a major existing shareholder, provides stability in ownership while ensuring the company maintains adequate funding for its operational requirements and project advancement timelines.