MULTI-COMMODITY mining and natural resource development company, Premier African Minerals, has converted a $300 000 loan availed by one of its directors, Mr George Roach, into new ordinary shares.
Premier African Minerals, a parent company to RHA Tungsten Mine in Matabeleland North, said in an update last week its board of directors agreed to amend terms of the existing loan agreement.
The move resulted in a resolution to convert rights with respect to the entire loan amount in return for cancellation of the loan’s security over the company’s shareholding of 6,1 million shares in ARC Minerals Limited, one of the subsidiaries to the group.
“The company has agreed that the loan ($300 000) can be converted into new ordinary shares on or before the maturity date (November 30, 2018) at the lesser of the volume weight average price of the five trading days immediately prior to the date of conversion or the closing price of the Premier’s shares,” said the company.
Premier has already received a conversion notice.
“The company has, therefore, issued 142 045 455 new ordinary shares at an issue price of 0,16 percent per conversion share. The conversion shares will rank pari passu in all respects with existing ordinary shares,” Premier said.
Application was set to be made for the convention shares to be admitted to trading on AIM and admission was expected to take place earlier last week.
On issue of the conversion shares, the company said Mr Roach will be interested directly and indirectly in a combined 618,7 million ordinary shares representing 8,4 percent of the enlarged issued share capital of the company.
On June 4, 2018 Premier entered into a non-interest bearing 60-day maturity loan with Mr Roach in a move aimed at providing additional working capital.
Mr Roach said Premier has pinned its hopes on an equity financing strategy after recording an operating loss of $8,2 million in 2017.
Source : Chronicle