Sprott Resource Lending Partnership provided a $5 million second advance to the Platinum Group Metals credit facility, increasing the total facility to $45 million.

The original credit agreement closed on November 20, 2015. It has been amended and restated to reflect the increase.

A summary of material terms related to the second advance under the amended and restated credit facility are:

• Interest will accrue and become payable to Sprott monthly on the second advance at a rate of LIBOR+8.5%, the same rate as for the original advance.
• Other terms, conditions and covenants related to the second advance are substantially the same as for the original advance, as amended.
• The second advance may be repaid in six equal, monthly instalments commencing on July 31, 2017, unless Sprott elects for earlier repayment from the proceeds of an equity or debt financing prior to December 31, 2017.
• The company must obtain certain regulatory approvals as a post-closing requirement of the second advance. The company must complete equity financings raising gross proceeds of $20 million by December 31, 2016.

Platinum Group Metals is based in Johannesburg, South Africa and Vancouver, Canada. The company’s business is currently focused on the operation of the Project 1 “Maseve” platinum mine and the exploration and pre-feasibility engineering on the newly discovered Waterberg platinum deposit.