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Platinum Group Metals Ltd. (Canada) T.PTM

Alternate Symbol(s):  PLG

Platinum Group Metals Ltd. is the operator of the Waterberg Project, a bulk underground PGM deposit located in South Africa. Platinum Group is listed on the NYSE American Exchange (PLG) and the Toronto Stock Exchange (PTM). Waterberg was discovered by Platinum Group and is being jointly developed with Implats, the Japan Oil Gas and Metals National Corporation (JOGMEC) and Hanwa Co. Ltd. Waterberg has the potential to be a large-scale, low-cost producer of palladium, platinum, rhodium and gold.


TSX:PTM - Post by User

Comment by Bigseeon Oct 06, 2016 9:30pm
74 Views
Post# 25320536

RE:RE:RE:RE:RE:RE:RE:Financing

RE:RE:RE:RE:RE:RE:RE:Financing
homerun05 wrote:
All said, any discussion of financing at this particular point in time is absolutely rediculous.  

The company literally just renegotiated its current finance structure.  
...
If a financing/offering were to occur it will occur after the full value of the company is disclosed to the entire market so that the proper value of the company is accounted for in the financing/offering.


I hope you are right, Homerun.  However, I do not share your level of conviction that some of your assumptions are a given.  I also do not believe it is ridiculous to discuss financing possibilities or related timing.  

I am not sure what you mean by, "literally just renegotiated its current finance structure".   They negotiated pushing out the timing of a few of their loan covanents, for a fee.  But this is a far cry from securing enough cash to see Maseve through to being cash flow positive.  They even came right out and said:

"The Company has also entered into discussions with the Lenders regarding an increase to the current credit facilities in order to provide the Company with additional working capital for the Maseve Mine. There is no assurance that any such increase will occur."

I agree it makes the most sense for PTM to but out a positive PFS on Waterberg, before considering any dilutive financing.  However, that process has been dragging on for more months than PTM has given shareholder good explanation for.  It gives me pause to wonder if Jogmec may have some issue which are delaying it's release … and if so, if these will be resolved before more cash, to compensate for the Maseve delays, is required.   That's hardly a ridiculous consideration, IMO. 
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