Platinum Group Metals has revealed that production at the Western Bushveld Joint Venture will be boosted after it secured a C$35 million (£19 million) financing deal.

The company intends to pay Anglo Platinum C$28 million for the restructuring of the site, with the remaining funds used to conduct a review and update of its feasibility study.

As a result, the project should be able to produce between 235,000 oz and 271,000 oz pgm 4E (platinum, palladium, rhodium and gold) at a steady state for about nine years.

"We are very pleased to complete this C$35 million financing with the support of our larger shareholders and our strong team of underwriters," said Platinum Group Metals President Michael Jones.

"The net proceeds of this financing provide the company with the means to rapidly advance its Western Bushveld projects through value engineering and implementation preparations and we expect to be making solid progress in the weeks ahead."

According to the mining and exploring firm, the financing involved 25 million common shares being issued at C$1.40 each, with 37,500 purchase warrants sold at eight cents apiece.

Platinum Group Metals, which is based in Canada, produced a positive final feasibility study for the Project 1 platinum mine of the Western Bushveld Joint Venture last July.

Source:

Platinum Group Metals closed financing raising $35 million (17/06/09)

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