- August 3, 2020
- Posted in LOCAL
ZIMBABWE-focused diversified mining group, Premier African Minerals, has announced the conversion of a loan it recently secured to consolidate its working capital reserves.
In April, Premier entered into a secured US$200 000 loan agreement and related subscription agreement.
In a recent statement, Premier said it was excited to announce the full conversion of the loan instrument entered into with a company owned by a trust of which Mr George Roach, the chief executive officer of Premier is a beneficiary.
“The loan, plus accrued interest, amounts to US$206 027 and the company has therefore issued today 232 647 763 new ordinary shares to the trust (conversion shares), representing approximately 1,9 percent of the current issued share capital of the company, at an issue price of 0,0684 pound per conversion share,” said Premier. It said the issue price is equivalent to 90 percent of the daily volume weighted average price during the five days trading days immediately prior to the conversion. Application will be made for the conversion shares to be admitted to trading on AIM and admission is expected to take place on or around August 15, 2020.
“On admission of the conversion shares, the trust will be interested in a total of 347 455 736 ordinary shares representing 2,7 percent of the enlarged issued share capital of the company. Accordingly, Mr Roach will be interested directly and indirectly in an aggregate of 837 132 385 ordinary shares, representing approximately 6,5 percent of the enlarged issued share capital of the company.
Meanwhile, Premier is in discussions with National Indigenisation and Economic Empowerment Fund (NIEEF) to agree on alternative financing options for the cash-strapped RHA Tungsten mining project in Kamativi. NIEEF, a partner of Premier African Resources in the RHA Tungsten mining project, owns 51 percent shareholding. Premier exclusively owns the plant and equipment at the Kamativi mining operation and the group has pointed out that the mineral claims were ceded as security under the plant rental agreement by RHA to Premier.
In Matabeleland South province, the mining group also owns the Zulu lithium and tantalite project and has since applied for an Exclusive Prospecting Order from the Ministry of Mines and Mining Development.