Premier African Minerals Limited Conversion of loan note and issue of equity (1895T)
03 January 2017 - 10:00PM
UK Regulatory
TIDMPREM
RNS Number : 1895T
Premier African Minerals Limited
03 January 2017
Premier African Minerals Limited / Ticker: PREM / Index: AIM /
Sector: Mining
For immediate release
3 January 2017
Premier African Minerals Limited
("Premier" or the "Company")
Conversion of loan note and issue of equity
Premier African Minerals Limited, the AIM-traded,
multi-commodity mining and resource development company focused on
Southern and Western Africa, announces that it has received a
notice of exercise by Darwin Capital Limited ("Darwin") to convert
19 loan notes with an aggregate value of GBP475,000 into equity
("Conversion Notice").
The loan notes converted represent all but 3 of the loan notes
issued in December 2016 and have been used to part fund the current
upgrades and development of the plant and underground operations at
RHA Tungsten (Private) Limited ("RHA"), Premier's 49% owned
tungsten project located in Zimbabwe and to support the exploration
and development activities at the Zulu Lithium and Tantalum Project
as well as for general working capital purposes.
Premier, at its election, has the right to redeem one or all of
the outstanding loan notes in cash at 105% of Par Value (equivalent
to GBP26,250 per loan note). Should Premier not redeem any loan
notes, Darwin may elect to convert up to 12 loan notes per month
from 1(st) February at 105% of Par Value into new ordinary shares
in Premier at the conversion price of 90% of the arithmetic average
of the volume weighted average share price per ordinary share for
the five consecutive trading days selected by Darwin during a ten
trading day period preceding conversion.
In addition, the loan notes have certain conversion triggers
that enable Darwin to convert the loan notes at 100% of Par Value.
As announced on 19 December 2016, the Company subscribed for a
further 22 loan notes of the available 35 Loan notes as part of the
issue date two of the loan note agreement with Darwin, full terms
of which were set out in the announcement dated 22 August 2016. As
the issue of any further loan notes other than those issued in
accordance with issue date 1 constitutes a conversion trigger,
Darwin has elected to convert 19 loan notes at 100% of Par Value
(GBP475,000) at the conversion price of 0.232704p.
The Conversion Notice was therefore received in aggregate for
GBP475,000 of the loan notes (the Par Value outstanding on the
remaining issued loan notes is GBP1,575,000 after conversion
today). The Company has therefore issued today 204,121,975 new
ordinary shares to Darwin ("Darwin Shares") at an issue price of
0.232704p per Darwin Share. The Darwin Shares will rank pari passu
in all respects with the existing ordinary shares. Application will
be made for the Darwin Shares to be admitted to trading on AIM and
admission is expected to take place on or around 9 January
2017.
Following the issue of the Darwin Shares, the Company's issued
share capital consists of 2,321,186,620 ordinary shares, with
voting rights. This figure may be used by shareholders in the
Company as the denominator for the calculation by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries
Premier African Minerals Tel: +44 (0)7734
Fuad Sillem Limited 922074
------------------ --------------------------- -----------------
Michael Cornish Beaumont Cornish Tel: +44 (0) 207
/ Roland Cornish Limited 628 3396
(Nominated Adviser)
------------------ --------------------------- -----------------
Jerry Keen/Edward Shore Capital Stockbrokers Tel: +44 (0) 207
Mansfield Limited 408 4090
------------------ --------------------------- -----------------
Charles Goodwin/
Harriet Jackson/ Yellow Jersey PR Tel: +44 (0) 754
Dominic Barretto Limited 427 5882
------------------ --------------------------- -----------------
Notes
Premier African Minerals Limited (AIM: PREM) is a
multi-commodity mining and natural resource development company
focused in Southern and Western Africa with production started at
its flagship RHA project in Zimbabwe.
The Company has a diverse portfolio of projects, which include
tungsten, rare earth elements, gold, lithium and tantalum in
Zimbabwe and Benin, encompassing brownfield projects with near-term
production potential to grass-roots exploration. The Company
recently acquired a 52% controlling stake in Mozambique-based TCT
Industrias Florestais Limitada, which owns a substantial limestone
deposit and forestry business located on rail in the Sofala
Province of Mozambique. In addition, The Company holds 2 million
shares in Circum Minerals Limited ("Circum"), the owners of the
Danakil Potash Project in Ethiopia, which has the potential to be a
world class asset. At present those shares are valued at US$4
million based on the latest price at which Circum has accepted
subscriptions. Premier also has a 4.5% interest in Casa Mining
Limited, a privately-owned exploration company that has a 71.25%
interest in the 1.2 million ounce inferred resource Akyanga gold
deposit in the DRC.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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