Platinum Group Metals Secures Strategic Capital as Waterberg Project Gains Momentum

Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) has taken a pivotal step forward with its recent non-brokered private placement, securing US$1.01 million from its major shareholder, Hosken Consolidated Investments Limited (HCI), through its subsidiary Deepkloof Limited. This move underscores HCI's unwavering confidence in the company's flagship Waterberg Project, a cornerstone of Platinum Group Metals' (PGM) long-term growth strategy. The financing, while modest in scale, marks a critical inflection point for the company as it advances toward full-scale development of one of the world's most promising platinum group metals (PGMs) assets.

Strategic Capital Allocation: A Vote of Confidence from a Key Backer

The private placement, finalized on May 29, 2025, saw HCI acquire 800,000 shares at a premium of 3.1% to PGM's NYSE American trading price, reasserting its 26% ownership stake. This transaction is not merely a liquidity boost but a strategic endorsement of PGM's vision. The funds will directly support pre-construction engineering and site preparation for the Waterberg Project, while also bolstering working capital.

Crucially, the placement's structure—fast-tracked without formal valuation or minority shareholder approval—reflects the urgency and alignment of interests between PGM and HCI. As the Waterberg Project progresses, this capital serves as a bridge to larger financings required for full-scale development, which could total upwards of US$946 million.

The Waterberg Project: A Low-Cost, Long-Life Asset with Robust Economics

The 2024 Definitive Feasibility Study (DFS) provides a compelling blueprint for the Waterberg Project's viability. Key highlights include:

• Extended Mine Life: Production is now projected to span 54 years, up from 45 in the 2019 DFS, with steady-state annual output of 353,208 4E oz (platinum, palladium, rhodium, and gold).
• Enhanced Economics: The project boasts an NPV of US$569 million (8% discount rate) and an IRR of 14.2%, driven by cost reductions and improved ore-to-waste ratios.
• Operational Efficiency: A 11.3 ore-to-waste ratio (up from 7.8) and bulk-mining techniques like long-hole stoping with paste backfill enable high extraction rates, reducing per-unit costs.

The DFS also highlights the project's environmental and social strengths: dry-stack tailings technology cuts water usage by 36% and minimizes environmental impact, while creating over 2,000 jobs during construction.

Risks and Mitigation: Navigating the Path to Production

Despite its promise, the Waterberg Project faces hurdles. Key risks include:
1. Smelter Agreements: Finalizing offtake contracts with South African smelters like Implats remains unresolved, though PGM is exploring alternative routes, such as a Saudi-based PGM refinery.
2. Regulatory Hurdles: Permitting delays and servitude negotiations for infrastructure like power lines could slow progress.
3. Market Volatility: PGM prices and the ZAR/USD exchange rate remain key variables.

However, PGM's flexibility—such as delaying development of the T-Zone and prioritizing the high-margin F-Central Zone—buffers against uncertainties. The DFS's conservative assumptions, including a 15% smelter deduction rate, further de-risk the project.

Why Act Now? A Compelling Investment Case

The private placement and DFS data present a compelling case for investors to act decisively.

First, the strategic partnership with HCI signals long-term support, reducing governance risks. Second, the Waterberg Project's low-cost profile—with cash costs of US$658/4E oz—positions it to thrive even in moderate PGM price environments. Finally, the extended mine life and robust NPV offer a rare combination of scalability and durability in the mining sector.

PGM's stock, while volatile, has shown resilience amid broader market fluctuations. Investors who recognize the Waterberg Project's potential stand to benefit as the company progresses toward production—a milestone that could catalyze valuation re-rates.

Conclusion: A Transformative Opportunity

Platinum Group Metals' recent capital raise and updated DFS data crystallize its transition from explorer to developer. With HCI's backing, a world-class asset, and a path to mitigate risks, PGM is primed to capitalize on rising demand for PGMs in green energy and automotive sectors.

For investors seeking exposure to a high-potential, low-cost PGM project with a clear development roadmap, PGM presents a compelling entry point. The time to act is now—before the market fully recognizes the Waterberg Project's value.

This article is for informational purposes only and should not be construed as financial advice. Always conduct your own research or consult a licensed professional before making investment decisions.