Platinum Group Metals Ltd.
OTC Bulletin Board : PTMQF
TSX : PTM

Platinum Group Metals Ltd.

October 18, 2005 09:26 ET

Platinum Group Metals Ltd.: First Tranche Brokered Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES

Platinum Group Metals Ltd. (TSX:PTM)(OTCBB:PTMQF) reports that 1.9 million units of the 2.2 million unit non-brokered private placement announced September 29, 2005 have closed. 1,494,000 units closed on October 13, 2005 and a further 406,000 units closed on October 14th, 2005. Each unit consists of one common share and one half a common share purchase warrant, with each whole warrant exercisable into a common share at a price of $1.75 for a period of 18 months from the date of closing.

A second tranche of the remaining 300,000 units is due to close on October 20th, as agreed to at the time of a separate subscription.

"We are pleased to see this placement closing with such a strong and supportive group of new institutional investors located in Europe," said R. Michael Jones, President. "This closing will allow us to continue our rapid and focused work on the Western Bushveld Joint Venture with Anglo Platinum and Africa Wide Mining. It will also provide funds to quickly carry out follow up drilling to assess new findings on our War Springs property." Detailed information on these projects can be found on the Company's web site at www.platinumgroupmetals.net.

The securities issued in this private placement will be subject to a four-month hold period from the date of closing in compliance with NI 45-102. The Company will pay a finder's fee of 2% in cash, totaling $37,004, on a portion of the placement now closed. As a result of the placement the Company has 45,068,631 common shares issued and outstanding and 53,144,061 on a fully diluted basis.

About Platinum Group Metals Ltd. (www.platinumgroupmetals.net)

PTM is based in Vancouver, BC, Canada and Johannesburg, South Africa, with a dual-continent management team with successful track records spanning more than 20 years in exploration, mine discovery, mine construction, and mine operations.

Formed in 2000, the Company is focused on the development of platinum operations in both countries. PTM holds significant mineral rights in the Northern and Western Limbs of the Bushveld Igneous Complex of South Africa including a large-scale joint venture with Anglo Platinum Limited in the Western Limb of the Bushveld Complex. The Western Bushveld Joint Venture, where PTM has the right to earn a 37% interest, includes an inferred resource of 4.7 million ounces of platinum, palladium, rhodium, and gold with further areas under drilling investigation.

PTM is a large mineral rights holder in Ontario, including the area surrounding Canada's only primary platinum and palladium mine near Thunder Bay, Ontario.

For US investors: SEC Form 20F, File No. 0-30306

On behalf of the Board of Platinum Group Metals Ltd.

R. Michael Jones, President and Director

Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 328 - 550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


The TSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

Contact Information

  • Platinum Group Metals Ltd.
    R. Michael Jones
    President
    (604) 899-5450 or Toll Free: 1-866-899-5450
    or
    Platinum Group Metals Ltd.
    John Foulkes
    Manager Corporate Development
    (604) 899-5450 or Toll Free: 1-866-899-5450
    (604) 484-4710 (FAX)
    info@platinumgroupmetals.net
    www.platinumgroupmetals.net