Premier gets a £1,7m loan from its CEO
Premier African Minerals has secured a £1.7 million (us$2187305.00 from today’s exchange rate) loan facility from its Chief Executive Officer (CEO), George Roach.
The funds will be utilized for various operational expenses at Premier’s Zulu lithium and tantalum project. The loan agreement allows Premier to request two separate drawdowns, with the first being for £1 million and the second for the remaining balance. Each drawdown will be repaid six months later.
In order to repay the loan, Roach will sell an equivalent amount of Premier ordinary shares on the market until the requested funds have been realized. He will then notify the company of the average selling price, including any broker fees incurred during the sale. The loan will be repaid in the form of new shares issued by Premier. The company will issue shares equal to the amount due on the repayment date, divided by the floor price of the sale shares used to fund the loan.
However, if Premier is unable to issue the settlement shares, repayment of the loan may be made in cash, along with compounded accrued interest at a rate of 8% per year starting from the date of the drawdown request.
This loan facility agreement allows Premier Minerals to access much-needed funding to continue its operations at the Zulu lithium and tantalum project. With the disposal of shares and the option of cash repayment, the company has flexibility in meeting its loan obligations. This news demonstrates the CEO’s confidence in the project and his commitment to its success. Investors will be closely monitoring Premier’s progress and the repayment of the loan in the coming months.
About Premier African Minerals Limited
Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.
The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company has accepted a share offer by Vortex Limited (“Vortex”) for the exchange of Premier’s entire 4.8% interest in Circum Minerals Limited (“Circum”), the owners of the Danakil Potash Project in Ethiopia, for a 13.1% interest in the enlarged share capital of Vortex. Vortex has an interest of 36.7% in Circum.
In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.