Listed on the Toronto and New York stock exchanges, Platinum Group Metals Ltd holds one of the most promising platinum reserves in the world. CDH advised Platinum Group Metals Ltd in regard to its USD 80 million dual funding, simultaneous drawdown loan arrangements with Sprott Resource Lending Partnership and Liberty Metals and Mining Holdings LLC including a mining titles due diligence and legal opinion in support of the drawdown, subordination agreements, share liens over South African subsidiaries' shares and secondary share liens.
The matter was complex by reason of the fact that the Sprott loan, being first in time, had to be subordinated to the Liberty loan. In addition, Liberty was granted a life-of-mine royalty stream in the form of a production payment agreement. The transaction required detailed South African Reserve Bank exchange control approvals, drafted by our Mining team.
Taking roles as leading legal advisors were Partner and Mining Sector Head, Allan Reid; Partner, Tax & Exchange Control team; and Partner and Practice Head Finance and Banking, Deon Wilken.