TIDMPREM
RNS Number : 1146K
Premier African Minerals Limited
31 August 2021
31 August 2021
Premier African Minerals Limited
Otjozondu Loan Extension and Funding
The Board of Premier African Minerals Limited ("Premier" or the
"Company") is pleased to announce it has agreed to increase the
existing loan agreement with Otjozondu Mining (Proprietary) Limited
("Otjozondu Loan"), to be funded by a new Loan Agreement with Mr
Neil Herbert, the Chairman of the Company ("Director Loan").
George Roach, CEO commented : "Otjozondu has contemplated for
some time now a change in the existing off take partner and the
payment terms. The existing contract is subject to a 90-day notice
period and appropriate notice has now been given.
This allows both Premier and Otjozondu to proceed with
alternative negotiations intended to improve the existing
arrangements and to secure advance funding to support planned
expansions in mining operations.
On receipt of notice, the existing offtake partner has varied
the previous trade terms, and this results in a delay in
settlement. The loan supports this and is expected to be of a
short-term nature."
Otjozondu Off-Take Partner
Otjozondu Mining (Proprietary) Limited ("Otjozondu") have issued
their existing off-take partner with the required 90-days' notice,
the contract will terminate on the 18 November 2021. Otjozondu
remains in ongoing discussions with its existing off-taker on
improved commercial terms including the required expansion capital
to assist with existing mining operations.
Premier is equally in advanced discussions with other potential
off-take partners to assist Otjozondu in securing the best possible
financial terms from its future off-take partner.
Otjozondu Loan
On 3 June 2021, Premier provided a US$260,000 loan direct to
Otjozondu for use at Otjozondu Manganese Mining Project in Namibia
("Initial Amount"). The secured loan with an interest rate of 20%
per annum is repayable in US$25,000 instalments on each shipment of
Manganese commencing from the beginning of September 2021.
Premier has now agreed to extend the existing loan by US$180,000
("Extension Amount") thus increasing the total loan amount to
US$440,000. Premier has further agreed that the repayment term of
the Initial Amount will only commence on the first shipment of
manganese following the signing of a new off-take agreement.
The parties have further agreed that the Extension Amount will
be immediately repayable on the signing of the new offtake
agreement from proceeds from the new off-take agreement.
Director Loan
Mr Neil Herbert has made available a loan of US$180,000 to the
Company. Under the terms of the Director Loan, the loan is both
unsecured and will not attract any interest and is repayable in
full by the Company on the signing of a new off-take agreement at
Otjozondu or 90 days following signing of the Director Loan,
whichever occurs sooner.
The purpose of the Director Loan is to provide funding to the
Company to allow the amendment of Otjozondu Loan while Premier,
acting collectively with Otjozondu, looks to secure the best
possible off-take funding package.
Further Disclosures
Mr Neil Herbert has a formal engagement with MN Holding Limited
("MNH"), the operator of Otjozondu, to act as consultant under
which he is entitled to a 10% fee on any overall purchase of MNH,
payable by MNH.
Mr Neil Herbert has a beneficial interest in Cambrian Limited
("Cambrian") which has an existing loan to MNH of US$450,000.
Forward Looking Statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"will" or the negative of those, variations or comparable
expressions, including references to assumptions. These
forward-looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward-looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018.
The person who arranged the release of this announcement on
behalf of the Company was George Roach.
Enquiries:
Premier African Minerals Tel: +27 (0) 100
George Roach Limited 201 281
Michael Cornish / Beaumont Cornish Limited Tel: +44 (0) 20 7628
Roland Cornish (Nominated Adviser) 3396
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Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 20 7408
Mansfield Limited 4090
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Matthew Bonner EAS Advisors LLC Tel: +1 646 495 2225
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Notes to Editors:
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,
encompassing brownfield projects with near-term production
potential to grass-roots exploration. The Company holds 5,010,333
shares in Circum Minerals Limited, the owners of the Danakil Potash
Project in Ethiopia, which has the potential to be a world class
asset.
In addition, the Company holds a 19% interest in MN Holdings
Limited, the operator of the Otjozondu Manganese Mining Project in
Namibia.
ENDS
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