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 premium pricing indicates strong confidence from the existing major shareholder in the company's valuation and future prospects.

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. The Waterberg Project represents a significant strategic asset in the platinum group metals sector, being developed as a bulk underground palladium and platinum deposit. This funding injection comes at a critical juncture for advancing the project toward construction phase, potentially accelerating development timelines and resource extraction capabilities.

Upon completion of the transaction, HCI will maintain a 26% ownership stake in the company, reinforcing its position as a substantial and committed investor. 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 providing market stability following the private placement.

The Waterberg Project is being jointly developed by Platinum Group Metals, Implats, Mnombo, and HCI through their collaborative partnership structure. This strategic investment highlights the ongoing commitment from key stakeholders in advancing the project's development and underscores the collaborative nature of mineral resource extraction ventures in the region. The funding arrangement demonstrates how established mining companies and major investors are working together to bring complex mineral projects to fruition, particularly in the strategically important platinum group metals sector where South Africa maintains significant global market presence.