PTM launches $25m bought-deal financing

South Africa-focused precious metals miner Platinum Group Metals (PTM) has reached an agreement with a syndicate of underwriters, led by BMO Capital Markets, to raise $25-million. The Vancouver-based company recently advised that, for it to achieve positive cash flow and to maintain its working capital covenants under existing loan facilities, it needs to source between C$5-million and C$15-million of additional funding. Under the terms of the bought-deal financing, the underwriters will buy 17.13-million shares at $1.46 apiece, for gross proceeds of $25-million. PTM will use the net proceeds of the offering for underground development and production ramp-up of the Maseve mine, near Rustenburg in South Africa's North West province, working capital during start-up, and general corporate purposes.